KUALA LUMPUR: The government fully understands the issues pertaining to the rising cost of living currently faced by Malaysians.
Prime Minister Datuk Seri Najib Razak in an audio message via his blog www.najibrazak.com today, said the government is trying its best to find measures to ease the burden of the people.
While the government is doing its part in finding solutions, Najib said he is also compelled to explain the real reason behind the increase in prices of goods and services.
He said in the message: "First of all, it is the external factors that are putting the pressure on the country's economy. When world oil prices drop, the government's revenue will be reduced. In this context, we are going to lose approximately RM30 billion next year."
Najib said therefore it is difficult for the government to intervene such as by increasing subsidies.
Using an analogy, the prime minister likened it to an individual who has his or her income reduced, then he or she would have a more limited spending capacity.
"This is similar to the government and we have limited ability and capability when the country's revenue has seen a decrease," Najib said.