Strong Economic Growth, Ringgit May Delay RON95 Subsidy Cut - Rafizi

Prior to the tabling of Malaysia's Budget 2025 this Friday, the public's primary concern has been whether the government will ultimately slash the RON 95 fuel subsidy.
However, the latest indications provided by Economy Minister Rafizi Ramli suggest that Malaysia's economic improvements may delay the implementation of RON 95 subsidy rationalization.
The strengthening of the ringgit has given the government more flexibility to achieve fiscal consolidation targets, potentially putting the implementation on hold for the time being, Rafizi said.



Responding to media questions about whether the plan to reduce the blanket RON95 subsidy will be announced in the upcoming Budget 2025, Rafizi said it was best to wait for the budget announcement and "subsequently the months after that because certain things have changed", The Edge reported.
For the record, the government eliminated diesel subsidies on June 10 in a move that was projected to save RM4 billion annually. Despite the fact that some affected segments received financial assistance, dissatisfaction increased when diesel prices were floated and quickly increased by 56%. 
The next focus is on blanket subsidies for RON95 petrol, which account for the majority of Malaysia's RM81 billion in subsidies in 2023. The government aims to reduce the bill to RM52.8 billion this year, Prime Minister Anwar Ibrahim says.