The Prime Minister of Malaysia, Datuk Seri Anwar Ibrahim said the government does not yet have a policy document that allows the implementation of subsidy cuts for RON95.
Although there is a study on the shift from blanket subsidies towards a targeted approach for RON95, the government plans to evaluate the results of the rationalization of electricity, chicken and diesel subsidies for now.
He said during the Prime Minister's Question Time (PMQT) session, he will first see the impact and reaction of the people before discussing whether or not it is necessary to implement targeted subsidies for RON95.
Nevertheless, Anwar reiterated his stance that government subsidies should not reach the super-rich and foreigners. The government does not compromise with the position.
However, the government has not ruled out the possibility of rationalizing the RON95 subsidy in the future. The government's current focus is to address the rationalization of the diesel subsidy.
Following the diesel subsidy rationalization that started in June, the government's potential move to reduce the still high RON95 subsidy is being closely watched by the market and investors.
Last week, Economy Minister Rafizi Ramli said the government was still examining the need to expand targeted subsidies to focus on RON95 petrol.
