Malaysia has fiscal room to support industries amid Iran war
The nation’s monthly subsidies for both petrol and diesel have climbed to RM6 billion, from RM700 million before the conflict
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MALAYSIA still has room to deploy fiscal support for industries impacted by the fallout of the Iran war, according to Zafrul Aziz, chair of the Malaysian Investment Development Authority.
“We are bracing ourselves to ensure that the Malaysian government can support some of these industries,” Zafrul said on Tuesday (Apr 14). “We still have the fiscal space.”
The country entered the crisis with strong fundamentals, Zafrul said, while savings from a reduction in fuel subsidies prior to the Middle East conflict have helped cushion some of the impact.
Still, a prolonged war and continued disruption to energy supply will weigh on the country’s fiscal position. Malaysia’s government is under pressure to contain rising living costs and manage a swelling subsidy bill due to higher oil prices.
The nation’s monthly subsidies for both petrol and diesel have climbed to RM6 billion (S$1.9 billion), from RM700 million before the conflict.
Authorities will discuss measures to address surging fuel and essential goods costs driven by the Middle East war in a meeting on Tuesday. BLOOMBERG
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