Malaysia Faces Inflation-Fiscal Trade-Off as Brent Crude Surpasses $100
Brent crude has surpassed $100 per barrel, reaching around $106-$107 and previously touching approximately $113.50.
The question on everyone's mind is whether this will trigger another inflationary shock in Malaysia.
However, the country has a capacity to insulate households from international oil prices through its targeted subsidy architecture.
This mechanism allows the government to prevent the full increase in fuel prices from passing immediately to households.