KUALA LUMPUR: The Domestic Trade and Cost of Living Ministry has denied that the rising cost of living is caused by an increase in transportation costs following the government's diesel subsidy targeting measures.
Deputy Minister Fuziah Salleh said transportation costs should not have an impact on the cost of living as they have already been absorbed through various initiatives implemented by the government, particularly the Budi Madani initiative.
"When we implemented the targeted subsidy, we already took transportation costs into account. Therefore, the transportation costs resulting from the targeted subsidy implementation should not increase as we have the Budi Madani for individuals, Budi Madani Agrikomoditi and the fleet card.
"Hence, transportation costs due to the targeted subsidy have already been absorbed. Therefore, it cannot be said that the increase in transportation costs is a direct result," she said in response to a question from Shaharizukirnain Abd Kadir (PN-Setiu) in the Dewan Rakyat today.
On Shaharizukirnain's question on the new model that will be set by the ministry to measure the cost of living, Fuziah said the indicator would consider not only income but also spending patterns, location and specific needs such as children with disabilities, elderly or sick parents, and others.
"These are among the indicators considered, in addition to income, and when developed, the result is to calculate the Adequate Living Expenses (PAKW) as launched by the prime minister on Nov 2.
"PAKW no longer uses the poverty line but takes into account other factors to develop the calculation of a decent standard of living," she said.
Fuziah said the government will match income data with the PAKW requirements. She added that efforts were being made to improve incomes so that the income gap and the cost of living were minimised, or ideally, the income exceeds the cost of basic needs.