KUALA LUMPUR – Malaysia’s inflation rate is expected to remain under control at between 1.5 and 2.5 per cent this year, even as the global energy crisis and geopolitical uncertainties continue to exert pressure, Economy Minister Akmal Nasrullah Mohd Nasir said today.
He noted the country’s latest inflation reading stood at 1.9 per cent, significantly lower than the global forecast of around 4.3 per cent.
“For 2026, our comfortable projection is for inflation to occur between 1.5 and 2.5 per cent. This is our target so that inflation movements remain within the scope that we can handle and do not have a significant impact on the people,” he told reporters after the ministry’s monthly gathering.
Akmal acknowledged that inflationary pressures stem largely from rising oil supply costs and input goods needed to sustain economic activity.
To cushion the impact, the government is rolling out mitigation measures including targeted fuel subsidies, logistics cost control under the Subsidised Diesel Control System (SKDS), and RM5 billion in additional financing through the Business Financing Guarantee Scheme (SJPP) and Bank Negara Malaysia facilities to support small businesses.
Still, he cautioned that inflationary pressures could intensify if the global crisis persists.
“So far, we have managed to maintain inflation at around 1.9 per cent, but the pressure will continue to have an impact. That is why we continue to look at official data and the actual situation at the industry level so that intervention measures can be taken earlier,” he said. – June 15, 2026