KUCHING, May 26 : Food and non-alcoholic beverages remains as the main contributor to inflation.
“Being a net food importer, Sarawak may continue to see an upward trend in its inflation this year.
“This is also coupled with pressure from escalating oil prices if the conflict between Russia and Ukraine prolongs,” said Deputy Premier cum Second Minister for Finance and New Economy, Datuk Amar Douglas Uggah Embas, in his winding up speech during the State Legislative Assembly (DUN) sitting.
As Sarawak’s inflation recorded 1.9 percent in the first quarter of 2022.
Uggah noted that the rate was slightly better than in 2021 where Sarawak’s inflation rate was at 2.1 percent, though in 2020, deflation was at 1.8 percent due to higher transportation cost and food and non-alcoholic beverage costs.
On labour market, Uggah expects it to improve, expedited by the continued normalisation of the economic sector.
“Sarawak has seen a decline in the unemployment rate, where in the first quarter 2022, the reported rate is 3.2 percent compared to 4.7 percent during the same period last year.
“Over the last two years, majority retrenchments were in food and hotel services, wholesale and retail and construction industries,” the minister added.
In 2020, a total 3,002 employees were retrenched and 3,765 employees experienced salary reductions.
Whereas in 2021, 1,035 and 2,167 employess were retrenched and experienced salary reductions respectively. – TVS
