Deputy finance minister Lim Hui Ying gave an assurance that the government remained committed to implementing various initiatives for the B40 group, including targeted subsidies.

However, she expressed confidence that prices will increase in a controlled manner.

“The government expects the price increase to remain at a controlled rate although we cannot deny that small increases may occur due to external factors such as commodity prices and supply chain issues.

“In this regard, the increase in the minimum wage is aimed at boosting the disposable income of low-income earners, helping them manage the cost of living more effectively,” she told the Dewan Rakyat today.

She was responding to a supplementary question from Nazri Abu Hassan (PN-Merbok), who asked about the fiscal reforms the government should prioritise in light of the new taxes affecting the cost of living.

In the 2025 budget, effective May 1, 2025, sales tax on non-essential items, especially imported premium goods like salmon and avocados, will increase. However, essential food items will remain tax-free.

Additionally, the service tax will be expanded to cover new services, such as fee-based financial services and business-to-business transactions, also from May 1, 2025.

The sales and service tax rate was previously raised from 6% to 8%, effective March 1 this year.

Lim also clarified that the government is working closely with industries to ensure the stability of essential goods, including rice and packaged cooking oil.