Malaysia ready to absorb fuel subsidy bill reaching RM45 billion annually
Anwar Ibrahim said protecting lower- and middle-income households remained a priority as crude oil prices reached US$120 to US$130 a barrel.
Malaysia would bear higher fuel subsidy spending rather than increase petrol prices for consumers, Prime Minister Anwar Ibrahim said. He put the potential annual cost at between RM42 billion and RM45 billion if global oil prices continued rising.
The government remained committed to a RON95 price of RM1.99 per litre, Anwar said. He cited international crude prices of US$120 to US$130 a barrel, up from about US$70 previously, and said subsidies were intended to limit pressure on household budgets, especially among lower- and middle-income groups.
Anwar made the remarks in Krubong, Melaka, during the Sentuhan Kasih Madani programme, which also marked the launch of the National Cost of Living Action Plan 2030. The event took place at the Hang Jebat Sports Complex.
Responding to criticism that extensive subsidies encouraged dependence on state assistance, he said policy decisions had to reflect the circumstances of poorer households.
He also argued that growth, investment and trade figures alone were insufficient measures of economic success. Advances in artificial intelligence and semiconductors should accompany efforts to meet basic needs in education, healthcare, employment and living costs, he said.
