Consumers in Malaysia grappling with rising cost of living
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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.
Questions & Answers
Q.Why did the Malaysian government decide to reduce subsidies?
Why did the Malaysian government decide to reduce subsidies?
The government aimed to strengthen the nation’s economic position. This measure was also intended to ensure that subsidies effectively reached their target groups within the population.
Q.When did the subsidy rationalisation programme take effect?
When did the subsidy rationalisation programme take effect?
The government's decision to reduce subsidies became effective on 3 September 2013. This was part of a broader programme to rationalise government spending.
Q.How much was allocated for subsidy schemes in 2014, and what was the main component?
How much was allocated for subsidy schemes in 2014, and what was the main component?
In 2014, MYR40.5 billion (USD11.61b) was allocated for various subsidy schemes. Out of this, MYR21 billion was specifically for subsidising RON95 petrol, diesel, and cooking gas.