“The target is to ensure that those who need subsidies will get the subsidies,” economic affairs minister Mustapa Mohamed said in a Bloomberg TV interview today.

“The sooner it is done, of course, (the sooner) it will relieve pressure on the government’s budget.”

The finance ministry had said on Friday that anticipated subsidies are expected to push the government’s total spending in 2022 “significantly higher”, by about RM30 billion.

It said the higher revenue from rising commodity prices was insufficient to offset the spike, adding that the extra funds were mainly for petrol, chicken and egg subsidies as well as flood relief.

Prime Minister Ismail Sabri Yaakob also said on Monday the final subsidy bill this year could breach RM71 billion.

Mustapa said the inflation rate was expected to increase slightly, yet remain within the forecast range of 2.2% to 3.2% in 2022.

Consumer prices rose by a modest 2.3% in April, while the core measure that strips volatile food and energy costs gained 2.1%.

The rising prices correspond with Malaysia’s economic recovery.

Gross domestic product gained speed in the first quarter of this year, as the country dropped most virus restrictions.

That allowed the central bank room to raise borrowing costs last month to preemptively fight inflation, even though consumer prices are gaining at the slowest rate in Southeast Asia.

Bank Negara Malaysia estimates the economy to quicken anywhere between 5.3% and 6.3% this year from a year ago, a forecast that Mustapa reaffirmed.

“This is premised on good growth in the first quarter of 2022 of 5%,” he said.

“The first few months of the second quarter, particularly April and May, look promising. So, for the first half, we’re going to do well, and for the year as a whole, we remain optimistic that 5.3% to 6.3% is achievable as highlighted by our central bank.”