Malaysia Plans Major Petrol Subsidy Overhaul Targeting Top Earners

The government aims to save RM8 billion annually by cutting RON95 subsidies for the wealthiest 15% of households.

Malaysia's government is set to roll back petrol subsidies for the top 15% income group starting mid-2025, as part of a significant fiscal reform effort.
The subsidy cut is expected to save RM8 billion annually, with funds redirected towards programs to improve the welfare and livelihoods of Malaysians.
Economy Minister Rafizi Ramli emphasized the need for a sustainable approach, acknowledging potential public backlash and inflation concerns.
The government is considering a two-tier pricing system for RON95 fuel, with wealthier citizens paying market rates while others continue to receive subsidies.
Details on subsidy implementation, including qualifying criteria beyond household income, are still under discussion and will be announced next year.