MALAYSIA: Malaysia’s Ministry of Economy will be presenting a new proposal to the cabinet aimed at ending petrol subsidies for the wealthiest 15% of the population. The plan, which uses a net disposable income approach, will target subsidies more precisely, Economy Minister Rafizi Ramli said during a forum in Kuala Lumpur on Thursday (January 9).
According to Bloomberg, Mr Rafizi said that it will probably happen “very soon,” as the re-targeting of subsidies “has to happen this year”.
He said, “We need to prepare the eligibility criteria in time for implementation,” adding that the data is accurate and ready.
Malaysia plans to cut subsidies for its most popular and affordable petrol by mid-2025, saving the government around eight billion ringgit (S$2.43 billion) annually.
The government is considering a two-tier pricing system, where the wealthiest 15% pay the full price for RON95, and the rest enjoy the subsidised rate. /TISG
Read also: World Bank urges Malaysia to cut petrol subsidy to achieve budget goals
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