Malaysia at final stage of petrol subsidy revamp: Economy minister

MALAYSIA’S Ministry of Economy is close to presenting to the Cabinet a new proposal on income classification that would allow the nation to end petrol subsidies for the wealthiest 15 per cent.

The government is looking at a net disposable income approach that would allow it to target subsidies more granularly, Economy Minister Rafizi Ramli told a forum in Kuala Lumpur on Thursday (Jan 9).

“Most probably that’s going to happen very soon because the subsidy re-targeting has to happen this year,” he said. “We need to prepare the eligibility criteria in time for implementation.”

The data is accurate and ready, he added.

Malaysia plans to cut subsidies for its cheapest and most popular petrol by mid-2025, freeing about RM8 billion (S$2.4 billion) a year for the government.

The government is mulling a two-tier price system for the country’s most-widely used fuel, so that the wealthiest 15 per cent pay the market rate for RON95 petrol while the rest enjoy the current subsidized price. BLOOMBERG