Niaga AWANI SPOTLight: Fuel Subsidy Rationalisation

Substantial fuel subsidies have been a historic strain on successive Malaysian national budgets. Based on the recent auditor-general’s report on the federal government’s 2022 financial statement, the government spent a total of RM62.11 billion in subsidies last year, with RM45.18 billion on petroleum products subsidy alone. This discussion focuses on the rationalisation behind removing fuel subsides and balancing economic efficiency via targeted policies.