Malaysia gives up petrol subsidy program
The Malaysian government recently announced that it would not proceed with implementing the petrol subsidy program (PSP). The program was announced by the Pakatan Harapan government, the previous government led by Prime Minister Mahathir in October 2019 and it was supposed to be implemented from the fiscal year of 2020. But the Malaysian government was changed to the Muhyiddin government in March 2020. The government pointed out that the program would only apply to Peninsular Malaysia and East Malaysia including Sabah, Sarawak and Labuan was excluded from the program. Therefore, the program would generate a regional gap in fuel prices and the government concluded that the program was not an appropriate policy. The program proposed by the Mahathir government would apply to the low to middle-income bracket with a monthly income of Ringgit 4,000 and below living in Peninsular Malaysia and 4 mil automobile owners and 2.6 mil motorcycle owners were expected to enjoy the benefits.