Malaysia will continue with its fuel subsidy restructuring, prompted by a surge in spending, even with the possibility of a general election this year, Bloomberg News reported Tuesday, citing a key finance ministry official.
The government is considering a further cut to subsidized fuel and a shift to a similar diesel subsidy system for the Sabah and Sarawak states to improve allocation efficiency, Deputy Finance Minister Liew Chin Tong reportedly said at an event.
The review came as global oil prices remain elevated following the Iran conflict, which has driven up Malaysia's fuel subsidy burden, according to the report.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)