Malaysia maintains fuel subsidies and prepares fiscal measures to ensure economic stability amid the Middle East crisis
KUALA LUMPUR: The government has implemented robust and proactive fiscal measures to ensure national economic stability should the Middle East crisis persist.
Senior Political Advisor to the Prime Minister Tengku Datuk Seri Zafrul Abdul Aziz urged the public not to be misled by claims that the government is unprepared or politicising the issue.
He cited fuel subsidy maintenance and cost-saving initiatives as key steps to alleviate public cost pressures.
“Even though global oil prices have risen, for RON95, especially BUDI MADANI RON95 (BUDI95), the price remains at RM1.99,” he told Bernama.
“This involves government subsidy, and if it were not given, the oil price would increase. This shows the government’s concern,” he added.
Zafrul was speaking during a ‘Singgah Sahur’ programme with frontliners at the Ampang Jaya District Police Headquarters.
He revealed the Cabinet has held two meetings specifically to discuss preparations for the crisis’s impact.
Every ministry has also been instructed to make preliminary preparations to ensure swift action if the situation prolongs.
“Looking from an economic perspective, the country’s position remains strong because over the last two to three years we have strengthened our economic fundamentals,” he stated.
He pointed to the government’s experience during the 2022 global oil price surge as proof of its ability to maintain subsidies without burdening the people.
The government under Prime Minister Datuk Seri Anwar Ibrahim continues to uphold fuel subsidies despite the current sharp rise in global oil prices.
Zafrul advised all parties against politicising the current situation, which could confuse the public.
“I advise certain parties, let’s not confuse the people and don’t politicise all these issues because if we look compared to other countries, our country is in a stronger position to face this challenge,” he said.
On March 11, Anwar said Malaysia’s oil supply security remains controlled, with the subsidised RON95 petrol price under the BUDI95 initiative maintained at RM1.99 per litre.
He said the government will continuously monitor developments in the Middle East and plan subsequent steps to safeguard national and public interests.
Earlier, Zafrul presented over 300 food packs and baskets to frontliners at several locations in Ampang.
