By Choy Nyen Yiau

KUALA LUMPUR (Nov 3): Malaysia is now looking to rationalise subsidies for basic goods such as sugar, rice and cooking oil, Deputy Finance Minister Lim Hui Ying said on Monday.

Any changes will be implemented in phases and gradually, she told Parliament during an oral question and answer session. The move aims to prevent leakages and ensure subsidies are channelled only to those who truly need them, she stressed. 

No timeline was provided, though Lim noted that the government is now prioritising smooth implementation of fuel subsidy rationalisation.

Malaysia has been scaling back its long-running subsidy programme that shields consumers from global price spikes for essentials like petrol and sugar. Economists, however, argue that the sizeable annual allocations are wasteful and should be redirected towards economic development.

Since Sept 30, Malaysia has rolled out targeted subsidies for RON95 petrol, allowing citizens to purchase up to 300 litres of the most widely-used fuel per month at the subsidised price of RM1.99 per litre. Last year, the government withdrew the diesel subsidies.

The roll-out of the fuel subsidy rationalisation will serve as the foundation for a broader restructuring of the national subsidy framework, Lim said on Monday.

Several measures are being taken to ensure subsidised goods reach their target groups, including strengthening enforcement operations with other agencies and ensuring sufficient availability of the items in the market, she added.

Published Date: November 3, 2025