Malaysian Prime Minister Mahathir Mohamad dismisses early poll discussion, citing inflationary concerns

[ASEAN NOW Content Team]

 

According to Nikkei, Malaysian Prime Minister Ismail Sabri Yaakob has dismissed calls for an early election, citing an increase in food prices and other living costs (May 31).

Although the next election isn't scheduled until 2023, Ismail Sabri has been under pressure from some members of his party, the United Malays National Organisation (UMNO), to call one sooner in order to capitalise on UMNO's recent gain in popularity in local polls.

Given inflationary pressures resulting in part from the Ukraine crisis, the prime minister told Nikkei in an interview that he will wait for "the perfect time" to call an election.

 

"We're in the midst of a period of rising inflation and high prices... do you believe now is the best time?"
According to Nikkei, Ismail Sabri said.

The Malaysian central bank predicts headline inflation to range between 2.2 and 3.2 percent this year, with food prices rising by 4.1 percent in April.
To reduce inflationary pressures, the central bank unexpectedly hiked its benchmark interest rate earlier this month.

The government has implemented price controls, but the expense of subsidies has put a strain on its finances.

 

The administration wants to reintroduce a Goods and Services Tax, according to Ismail Sabri of Nikkei (GST).

The GST was adopted by an UMNO government in 2015, but it was repealed by Mahathir Mohamad's administration three years later, when people resented the 6% consumption tax for rising costs.

Ismail Sabri said the government was aware of the GST's unpopularity but had few options, noting that the tax has cost the government 20 billion ringgit (US$4.57 billion) in annual revenue since it was repealed.

He told Nikkei that the government will aim for a GST rate that was not too low to burden people, but not too low to "undermine the purpose of expanding tax income."

 

In 2022, Malaysia is anticipated to spend 28 billion ringgit on gasoline subsidies alone, up from 11 billion ringgit last year, in addition to subsidies for cooking oil, sugar, and flour.

[Kinnock]

Mahathir is not the Malaysia Prime Minister.  He retired.  So photo is wrong too.