Govt pay hike will not affect inflation: Minister

CYBERJAYA: The government will make sure any possible increase in the civil servant salary will not affect inflation rate, says Second Finance Minister Tan Sri Nor Mohamed Yakcop. “No, it will not be affected. We will make sure that if and when the salary increase comes, it (inflation) will not be affected,” he told reporters after visiting the MKN-Embassy Techzone here yesterday.

The Techzone is developed by MKN Embassy Development Sdn Bhd. He said the inflation rate currently was at a low of 1.5 per cent and it was expected to be not more than 2.5 percent this year.

Yesterday, the Statistics Department reported that the Consumer Price Index for April increased by 1.5 per cent to 105.0 compared with the same month last year but was unchanged when compared with March this year.

On the possible interest rate cut, Nor Mohamed said: “I don’t know … You should ask Bank Negara Malaysia.” Asked if Malaysia would refinance the maturing sukuk, he said: “No.” He stressed that the government has no plan to issue a new global Islamic bond at the moment.

Source : The Borneo Post