Malaysia Banks on Subsidy Savings to Narrow 2024 Fiscal Deficit

Economy Minister Rafizi targets 2024 budget gap at 4.6% of GDP
Subsidy reforms will save at least $1 billion a year, he says

WATCH: Malaysia Economy Minister Rafizi Ramli tells Bloomberg’s David Ingles exclusively targeted subsidies will save the govt at least one to two billion dollars.Source: Bloomberg

Malaysia is counting on its plan to cut subsidies next year to help narrow the budget deficit, giving the government room to avoid resorting to “too many taxes,” according to Economy Minister Rafizi Ramli.

The government expects savings of at least $1 billion to $2 billion dollars a year from its shift to targeted subsidies that could begin as soon as the second quarter of 2024, he said in an interview with Bloomberg Television’s David Ingles. Malaysia currently absorbs much of the price of fuel and cooking oil for its population, straining the Southeast Asian nation’s coffers.

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Malaysia Banks on Subsidy Savings to Narrow 2024 Fiscal Deficit