Malaysia is preparing to rationalise subsidies for sugar, rice and cooking oil Deputy Finance Minister Lim Hui Ying announced on Monday, reports The Edge.
Speaking in Parliament during a question-and-answer session, Lim said that any changes would be introduced gradually and in phases. The goal, she explained, is to prevent misuse of subsidies and ensure that financial support reaches only those who genuinely need it.
While she did not specify a timeline for the rollout, Lim noted that the government’s current focus is on the smooth implementation of fuel subsidy rationalisation.
Malaysia has been gradually reducing its long-standing subsidy programme, which has shielded consumers from fluctuations in global prices of basic goods like petrol and sugar. Economists have argued that the large annual spending on subsidies is inefficient and should instead be directed toward national economic growth and development.
Since September 30, the government has introduced targeted subsidies for RON95 petrol, allowing Malaysians to buy up to 300 litres per month at a subsidised rate of RM1.99 per litre. The diesel subsidy was withdrawn last year.
Lim said that the fuel subsidy rationalisation plan would form the foundation for a wider restructuring of Malaysia’s subsidy system.
To ensure that subsidised goods reach the intended beneficiaries, she added, the government is tightening enforcement efforts through inter-agency collaboration and ensuring sufficient supply of essential items in the market.
