Consumers in Malaysia grappling with rising cost of living, GST

While most consumers grappled with the escalating cost of living, the Malaysian government’s subsidy rationalisation programme and the impending introduction of the goods and services tax (GST) also took centre stage.

The government’s decision to reduce subsidies, effective 3 September 2013, was generally aimed at strengthening the nation’s economic position and ensuring that subsidies reached the target groups.

In 2014, the government allocated about MYR40.5 billion (USD11.61b) for its various subsidy schemes. Out of that amount, MYR21 billion went towards subsidising RON95 petrol, diesel and cooking gas or liquefied petroleum gas.