Economy Minister Akmal Nasrullah Mohd Nasir said Malaysia is refining its fuel subsidy targeting mechanism to factor in reasonable household living expenses alongside income classifications to better assist the intended groups [1, 2]. He stressed the programme must move beyond basing subsidies solely on income because economic conditions also depend on basic expenses and various financial commitments which differ among households [1]. "The challenge is determining the most suitable threshold or level to apply. From the ministry’s perspective, the matter needs to be assessed more comprehensively," Nasir said. "We do not want to create classifications that can be debated from different perspectives because economic conditions are not measured solely by income, but also by reasonable basic expenses and other related factors" [1].
The ministry is prioritizing this refinement to strengthen fiscal management, with a focus on diesel subsidies, amid ongoing external conflicts that have increased burdens on all citizens [1, 2]. Nasir noted, "We know that as long as conflicts remain unresolved, the burden will continue to be shared by all of us. That is why mitigation and intervention measures are introduced from time to time" [2].
He emphasized Malaysia’s goal to maintain resilience in the face of global uncertainties. "Whatever developments are taking place on the global stage, we certainly hope the situation will stabilise. However, for Malaysia, we must ensure continuity in the supply of fuel and other essential goods. We are doing our best to sustain our resilience," Nasir added, while declining further details at this stage [2].
The remarks came on May 16 during a launch of a strategic collaboration between the Economy Ministry and the Federal Territories Islamic Religious Council (MAIWP) under the People’s Income Initiative–Food Entrepreneur Initiative (IPR-INSAN) in Kuala Lumpur. The event was officiated by Minister in the Prime Minister’s Department Dr Zulkifli Hasan [1, 2].
The ministry’s efforts to revise the subsidy mechanism aim to better reflect actual household economic strains beyond income measures and to improve fiscal efficacy, particularly as Malaysia navigates ongoing global and regional challenges [1, 2].
