The plan to remove blanket fuel subsidies this year is on track, Malaysian Economy Minister Rafizi Ramli says. The move is to reduce the national fiscal deficit.
Last year, Rafizi announced the targeted RON95 subsidy program in the second half of 2024 to optimize its resources for those who need them the most. He had said those in the top 20 income group were receiving a whopping 53% of blanket fuel subsidies, which is unsustainable.
The blanket subsidies on RON95, which is the most widely used and affordable fuel in Malaysia, took up most of the total RM81bil subsidies handed out in 2023.
He also said that the government plans to narrow its budget deficit to 4.3% of gross domestic product this year, up from 5% in 2023.
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