Anwar’s petrol subsidy cuts test patience of Malaysians ‘addicted’ to cheap fuel
Malaysia’s ruling coalition suffered a by-election loss after its diesel subsidy cuts, demonstrating the risks of the coming RON95 reforms
Expertly switching between woks as he whips up appam, the coconut and rice batter pancakes that draw morning commuters to his roadside stall in a Kuala Lumpur suburb, Raj Kumar harbours anxieties that simmer away beneath the calm: petrol subsidy cuts are looming and prices may soon rise again.
“Our suppliers raised prices after diesel subsidies were cut last year,” he told This Week in Asia. “If they cut petrol subsidies, prices are sure to go up again.”
The move is part of a bid to slash an unwieldy subsidy bill that soared to an all-time high of nearly 80 billion ringgit (HK$148.6 billion) in 2023, with about half spent on fuel – both petrol and diesel.
The government’s aim is to end blanket subsidies and ensure that only the most needy receive state support – a move that is fiscally prudent but politically dangerous for Anwar with a general election due by 2028 at the latest.