Malaysia's fuel subsidy may hit as much as 40 billion ringgit ($9.8 billion) this year if global energy prices stay high, more than double the 15 billion ringgit allocated in the 2026 budget, Reuters reported Wednesday, citing Prime Minister Anwar Ibrahim.
In a written parliamentary reply dated Tuesday, Anwar said monthly spending on diesel and RON95 fuel subsidies averaged about 800 million ringgit in January and February before surging to around 5 billion ringgit in both March and April following the outbreak of the Iran war, according to the report.
The prime minister, who also serves as finance minister, said the government would continue prioritizing support for households facing higher living costs while closely monitoring its fiscal position to ensure subsidy assistance remains sustainable, the news agency said.
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