Considered Malaysian news, analysis and opinion.
Japan's Prime Minister Sanae Takaichi has pledged to restore the consumption tax on food to 8 per cent after a planned two-year reduction beginning April 2027, balancing electoral promises against mounting fiscal pressures.
Malaysia's inflation outlook appears anchored in the near term, yet the economy remains structurally vulnerable to commodity price fluctuations and currency swings that could upset the delicate balance.
The Japanese yen has weakened to near four-decade lows despite the Bank of Japan raising interest rates and the government intervening in currency markets. Market watchers expect further official action as the currency continues its protracted decline.