Former finance minister Lim Guan Eng is proposing a RM3 billion injection from proceeds from the prosperity/windfall tax into a National Price Stabilisation Fund that provides incentives to increase production and supply as well as partly subsidise costs to slow down the increase in prices of basic goods.

He said in a statement today that such a National Price Stabilisation Fund would also help to temper extreme volatility in prices by sourcing directly from producers or reducing logistic costs.

"Under Budget 2022, the allocations provided are too small such as RM200 million to help reduce prices of essential goods for residents living in rural areas...