Inflation is still a real and present threat to the economy.

Inflation is still higher than nominal interest rates, and this is a clear sign that monetary conditions are highly accommodative in Malaysia and the need for interest rates to return to a neutral level.

This is the start of a hiking cycle. A series of small hikes will follow until inflation falls below 3%.

Investors are recognizing the fundamentals are still terrific, ... Profits are sound, the economy is growing. Inflation is not yet rearing its ugly head.

At the moment there is not a broad-based systemic inflation problem bubbling up in the economy. The Fed as a precaution has raised rates a little bit, will raise rates a little bit more but I don't think they are going to do a whole lot more after that.

It should not be introduced at high levels, where it will shock the economy. Instead, the GST should be gradually eased in and the list of taxable goods expanded over time.