PASIR MAS: The government will continue to provide subsidies on four controlled items to help reduce the country's inflation rate.
Minister in the Prime Minister's Department (Economy) Datuk Seri Mustapa Mohamed said the government realised that the fuel subsidies on cooking oil, petrol, diesel and liquefied petroleum gas (LPG) were important to the people.
"Our country is now moving into the endemic phase and despite having a little pressure following the uncertain inflation rate, the government can still manage the rate.
"This is due to government efforts and assisted by the relevant agencies.
"To maintain this, the government will continue to monitor the situation from time to time," he told this to reporters at the reunion of former Sultan Ibrahim School students here.
Mustapa said the country's inflation rate was at 2.2 per cent in March, which is still low compared with the United States which recorded an 8.5 per cent inflation rate and Europe 7.5 per cent.
"The country's inflation rate is expected to increase following the rise on Producer Price Index (PPI) of 11.6 per cent and also due to the pressure of inflation rate at the global level.
"In February, the PPI was at 9.7 per cent. If the rate increases, which it normally will, it will cause inflation ... hence, the government will monitor this closely," he added.
On another note, Mustapa who is also Jeli MP, said the government was confident that the country's economy would recover soon following the reopening of the Kelantan/Thai borders as well as other borders in the country.
"The government was informed that the economy at the country's border with Singapore in Johor is improving.
"Traders have started their operations as usual and the state's tourism sector is almost back to normal," he said.