Malaysia to roll out targeted fuel subsidy from January

Move to help cut welfare spending reflects government's fiscal rigor

Malaysia is looking to reign in fuel subsidy spending after allocating 3 billion ringgit in June last year toward the measure. © Reuters

October 7, 2019 20:37 JST

KUALA LUMPUR (Nikkei Markets) -- Malaysia on Monday announced a long-delayed targeted fuel subsidy program in a move that economists said will shrink its hefty social assistance bill and demonstrate its commitment towards fiscal consolidation.

The program, due to start from January next year, will cost the government 65.4 million ringgit ($15.6 million) a month, or over 780 million ringgit annually, the Ministry Of Domestic Trade and Consumer Affairs said in a statement.