KUALA LUMPUR, Malaysia (AP) — Diesel price in Malaysia jumped by more than 50% on Monday as part of a revamp of decades-old fuel subsidies to tighten government spending and save billions of ringgits annually.
The restructuring eliminates blanket energy subsidies and redirects them to the needy. They’re part of economic reforms pledged by Prime Minister Anwar Ibrahim, whose government says they’re needed to build a more sustainable economy and plug losses from smuggling cheap oil to neighboring countries.
The plan is bold but risky for Anwar, who took power in 2022, as it may anger working-class voters struggling with rising cost of living. He announced the unpopular decision to cut fuel subsidies last month to give time to lower-income groups to prepare for the transition.
“All prime ministers before this had agreed on the targeted subsidy, but there was no political will to implement it because of the risks
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