KUALA LUMPUR: The government is maintaining its RM40 billion fuel subsidy commitment under the 2027 Budget to shield Malaysians from global oil price volatility and curb subsidy leakages.
Finance Minister II Datuk Seri Amir Hamzah Azizan said the government remained committed to targeted subsidies to protect the people from rising global prices while ensuring that assistance reached the intended beneficiaries.
He said economists, including from the International Monetary Fund and local experts, had proposed setting fuel and electricity prices according to market rates for all consumers, with cash assistance provided only to the poor.
"The government does not agree with this approach. We remain committed to continuing targeted subsidies to protect the people from rising global prices, while curbing leakages caused by smuggling and ensuring that subsidy benefits do not fall into the hands of non-citizens.
