In the recent highly anticipated adjustment of fuel subsidy policies, the Malaysian government has once again stated its position and announced that targeted subsidy measures for RON95 gasoline will not be implemented temporarily. This decision is made by Malaysiaprime ministerAnwar Ibrahim, who also serves as the Minister of Finance, officially announced during a parliamentary inquiry that he emphasized that the government currently does not have any relevant policy documents to accelerate the implementation of 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 livelihood needs." He further explained that the government did conduct in-depth research on canceling comprehensive subsidies for RON95 gasoline before, but after comprehensive consideration, it was decided to prioritize policy adjustments for electricity, chicken, and diesel subsidies.

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

It is worth noting that the Malaysian government has cancelled the policy of fully subsidizing diesel retail prices since June 10th, 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 Second Finance Minister Amir Hansha, as of July 1st, over 115000 personal assistance applications from diesel private car owners have been approved nationwide.

However, despite the government taking a series of measures to address the issue of rising fuel prices, domestic and foreign financial institutions still express concerns about Malaysia's fiscal situation. Citigroup pointed out in a recent report that Malaysia's fiscal expenditure in the first five months of this year has reached 53.9% of the total annual expenditure, higher than the same period in previous years. This further highlights the urgency of adjusting fuel subsidy policies.

However, the Malaysian government still maintains its current position that it is not advisable to easily adjust the subsidy policy for RON95 gasoline until a comprehensive evaluation of the effectiveness of various policies is conducted. Malayan Bank economist Suhami 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.

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 next year's budget at the end of the year. This prediction further indicates the market's widespread attention to the future policy direction of the Malaysian government.