Government firm implementing diesel subsidy – PM Anwar – Auto News

Prime Minister Anwar Ibrahim emphasize that government has to take stern measures, including targeting diesel subsidies.

Despite receiving backlash, he mentioned that diesel subsidies has successfully increased investor confidence on country stock market stability and strengthened the implementation of Fiscal Responsibility Act.

“This step has had a positive impact on the market, after we targeted the diesel subsidy, the price of diesel dropped by 40 cent. This gives confidence to investors and shows our commitment to stronger economic reforms,” he said, as quoted by Bernama.

Anwar also mentioned that implementing subsidies that are not adequately targeted burdens the country’s finances.

“Malaysia has the lowest tax base in Asia, and this becomes a big challenge when the government has to make practical decisions in implementing reforms, including subsidies,” he added