Malaysia to Remove Diesel Subsidies on Monday, Prices to Rise by 50%, Saving 4 Billion Ringgit

Jun 9, 2024, 01:57 PM

Malaysia will remove diesel subsidies on Monday, fulfilling a key pledge to improve the country’s finances. As a result, diesel prices are expected to rise by about 50% on Monday. The subsidy removal is part of a broader reform to revamp decades-old fuel subsidies. This move is anticipated to save the Malaysian government approximately 4 billion ringgit annually and tighten government spending. Additionally, the government plans to provide direct assistance to certain sectors to mitigate the impact of the price increase, which could reach up to 56%.