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Why subsidies sound costly but incentives sound strategic — Mohd Zaidi Md Zabri (opens original article in a new tab)

TL;DR

Malaysia's fuel subsidy program faces scrutiny as it costs the government RM147 million daily, with debates on whether household subsidies and corporate tax incentives should be evaluated consistently.

  • Malaysia's fuel subsidy program allows eligible citizens to buy RON95 at RM1.99 per litre, while the unsubsidized price is RM3.92 per litre.
  • Fuel subsidies cost the government approximately RM1,700 per second, or RM147 million daily, creating significant fiscal pressure.
  • The article highlights the differing public perceptions of subsidies for households versus tax incentives for corporations, arguing for consistent evaluation of both.

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