KUALA LUMPUR, June 29 (Xinhua) -- Fertilizer and food-related costs are expected to rise significantly, with fertilizer prices projected to increase by between 15 and 20 percent, while food costs could rise by around 8 percent, given Malaysia's heavy reliance on imported inputs, Economy Minister Akmal Nasrullah Mohd Nasir said on Monday.
This is in part due to 63 percent of the country's fertilizer being imported, leaving the country's agricultural sector particularly exposed to global disruptions, Akmal told parliament.
Small and medium enterprises (SMEs) have been identified as highly vulnerable due to limited financial buffers, with cash flow pressures expected to intensify as input costs rise sharply, he said, adding that the government is working to ensure the security of essential goods, control the prices of basic goods and improve the efficiency of distribution channels in order to reduce the impact of price increases.
Akmal said the government has set out a broad policy response to what it describes as a prolonged global supply crisis. Current rice stocks, including buffer reserves, are sufficient for five to six months, while supplies of essential food items such as chicken, eggs, fish, milk and fruit are adequate for at least one month.
The government's strategy is structured around four pillars: protecting citizens, stabilizing supply and prices, supporting SMEs and industry, and strengthening long-term economic resilience with targeted cash aid and fuel subsidies expected to continue. ■
