KUALA LUMPUR (Reuters) -Malaysia may save up to 4 billion ringgit ($953.74 million) annually from its move to adjust subsidies for the widely used RON95 transport fuel, state news agency Bernama reported, citing the country’s finance minister.
The government had initially targeted savings of up to 8 billion ringgit from its plan to remove petrol subsidies for the country’s highest earners, but rowed back on the proposed measure due to mounting public concerns about rising living costs.
Under the adjusted plan announced on Monday, Prime Minister Anwar Ibrahim said the government would continue to provide subsidised fuel to citizens, but foreigners will have to pay more at the pump.
Following the announcement, Second Finance Minister Amir Hamzah Azizan said the move was expected to generate annual savings of between 2.5 billion ringgit and 4 billion ringgit, assuming crude oil prices at around $75 per barrel, Bernama reported on Monday.
The savings will be rechannelled towards public assistance programmes, including cash aid for the needy, he was quoted as saying.
($1 = 4.1940 ringgit)
(Reporting by Rozanna Latiff; Editing by David Stanway)
