SCMP China reports: The government will review fuel subsidies for higher-income Malaysians but has yet to decide how the cut-off should be applied, Anwar says The issue has sharpened as the Middle East energy shock strains government finances, forcing authorities to weigh fiscal discipline against the risk of angering middle-class voters in a car-dependent country. Anwar said the government had agreed in principle to review fuel subsidies for higher-income Malaysians, though it had yet to decide whether the cut-off should apply to the top 20 per cent, 15 per cent, 10 per cent or 5 per cent of earners. “We have yet to decide whether [it will be applied to] the T20, T15, T10 or T5 income groups, as we do not want it to [affect] the upper middle class,” Anwar told reporters after an event on Sunday.
Malaysia introduced the BUDI95 targeted fuel subsidy in September last year, allowing eligible citizens to buy up to 300 litres of RON95 petrol a month at 1.99 ringgit (50 US cents) per litre, among the lowest pump prices in Asia.
Originally reported by SCMP China. This story has been edited and re-presented by BRIC Team.
