Malaysia's inflation predicted to climb to 2.9%

Due to cuts in fuel, sugar subsidies.

According to DBS, Malaysia's inflation will continue to climb higher in November. A forecast of 2.9% YoY has been penciled into its forecast as the effects of the cuts in fuel and sugar subsidies will continue to linger.

Here's more;

To rein in a deteriorating fiscal balance, the government took steps to rationalise its expenditure on subsidies. It cut fuel subsidy in September, followed by abolishing the sugar subsidy in the recent budget. Pump prices have spiked up and food inflation probably will inch a notch higher.

As it is, inflation will likely surpass the Overnight Policy Rate of 3.00% by Jan14 and stay above that level for the first nine months of the year.

But it’ll be temporary and when the base effect lapses, inflation should ease to 2.6% by end of 2014. Full year inflation will likely average 3.0% in 2014, from 2.1% in 2013.

But there is little justification for Bank Negara to start tightening on monetary policy. Growth momentum is already slowing on easing domestic demand while the inflationary impact of policy changes will be transient.

As long as inflation expectation remains moderated by slower growth, the centralbank will most likely maintain a steady keel in monetary policy right through 2014.

If you've been wondering whether SBR could work for your company — yes, probably.

A lot of the companies we partner with started as readers. They'd been following our coverage for a while, saw their own customers and competitors in it, and eventually asked the obvious question: could we do something with you? The answer is usually yes. The shape of it depends on what you're trying to do.

The options are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. Some partners use one channel; most use a mix. We figure out the right combination by starting with your brief, not with our rate card.

So if the question has been on your mind, here's the easy way to ask it.

We'll tell you honestly whether we can help, and how. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia