In the recent highly anticipated adjustment of fuel subsidy policies, the Malaysian government has once again expressed its position and announced that it will not temporarily implement measures againstTargeted subsidy measures for RON95 gasoline. This decision is made by Malaysiaprime ministerMinister of Finance Anwar·Ibrahim officially announced during a parliamentary inquiry that he emphasized that the government currently does not have relevant policy documents to accelerate this measure.

Anwar ·Ibrahim stated in a parliamentary meeting on July 2nd, "As of now, we do not have any policy documents supporting the immediate implementation of targeted subsidies for RON95 gasoline. This is based on our careful consideration of the current economic situation and people's needs." He further explained that the government did conduct in-depth research on canceling the comprehensive subsidy for RON95 gasoline, but after comprehensive consideration, it has been decided to prioritize the adjustment of subsidy policies for electricity bills, chicken, and diesel.

Anwar ·Ibrahim said, "Subsidies for electricity, chicken, and diesel are important measures we have taken last year and this year. We need to first evaluate the effectiveness of these measures and the public's response, and then consider whether it is necessary to adjust the subsidy policy for RON95 gasoline." He emphasized that the government will closely monitor market trends and public feedback to ensure that all decisions can maximize benefits to people's livelihoods.

It is worth noting that the Malaysian governmentStarting from June 10th, the policy of fully subsidizing diesel retail prices was cancelled, resulting in a significant increase of about 56% in diesel retail prices, from RM2.15 per liter to RM3.35 per liter. In order to alleviate the impact of this change on people's lives, the government has provided subsidies to eligible diesel car owners through other means. According to Amir Hansha, the second finance minister, as of July 1st, over 115000 diesel private car owners nationwide have received approval for their personal assistance applications.

However, although the government has taken a series of measures to address the issue of rising fuel prices, domestic and foreign financial institutions still express concern about Malaysia's fiscal situation. Citigroup pointed out in a recent report that Malaysia's fiscal expenditure for the first five months of this year has reached half of the total expenditure for the year53.9%, higher than the same period in previous years. This further highlights the urgency of adjusting fuel subsidy policies.

Nevertheless, the Malaysian government still maintains its current position, believing that adjustments should not be made lightly before a comprehensive evaluation of the effectiveness of various policiesSubsidy policy for RON95 gasoline. Malayan Bank economist Sukhemi had previously predicted that the government may cancel the comprehensive subsidy for RON95 gasoline in the second half of the year, but he also suggested that the government should take action as soon as possible to avoid unnecessary market fluctuations.

Lianchang International（The Finance and Market Research Department of CIMB also mentioned in its report that the government may announce a specific plan to adjust the RON95 gasoline subsidy when announcing the next fiscal year's budget at the end of the year. This prediction further indicates the widespread market attention towards the future policy direction of the Malaysian government.