Malaysia plans more subsidy cuts despite 1MDB scandal

Kuala Lumpur

MALAYSIA plans to cut more subsidies and move billions of dollars in government employee housing loans off its balance sheets to bolster its fiscal position, even as a growing scandal threatens Prime Minister Najib Razak's ability to implement potentially unpopular policies.

The government will gradually remove subsidies from petrol, liquefied petroleum gas and cooking oil in coming years, Mohd Irwan Serigar Abdullah, secretary general of Treasury, said in an interview late on Monday. A Fitch Ratings decision to pull back from downgrading Malaysia is giving the country space to reinforce its fiscal credentials, he said.