Part 3/10:

Inflation itself has been rising sharply. In August, Malaysia’s inflation hit 4.7%, up from just 2.3% at the start of 2022. This spike can be partially attributed to the government’s subsidy program of nearly 80 billion Ringgit, which has helped shield consumers from the harshest effects of rising food prices. However, small and medium-sized business owners are still feeling the strain.

Rising Costs and Supply Chain Challenges

The import-dependent nature of the Malaysian economy exacerbates the problem of rising costs. For instance, basic commodities like noodles have seen their prices increase from 7 Ringgit to 7.50 and are projected to reach 8 or even 10 Ringgit soon. As the cost of imported goods climbs, business margins shrink, and consumers face higher prices on everyday items.