KUALA LUMPUR, April 20 -- The government's call for Malaysians to be more mindful in their spending reflects the realities of a supply shock, economists say, as global disruptions begin to put pressure on prices.

Lee Heng Guie, executive director of the Socio-Economic Research Centre (SERC), said the current situation is driven by supply constraints, warning that stimulating demand at this stage could worsen inflation.

"You have a supply shock. Now, we don't feel that yet because subsidies are buffering the impact, so it hasn't really hit your pockets.

"But inflation has started to creep up and the cost of living will remain elevated," Lee said when contacted by Malay Mail.

Subsidies cushion impact, but stimulus risks fuelling further...