Repurposing Fuel Subsidy to Facilitate Malaysia’s Shift to Electric Vehicles

Tham Siew Yean|Kevin Zhang

Malaysia seeks to ensure the poor benefit from fuel subsidies rather than the rich, but rationalisation can also contribute towards sustainability. The savings from the removal of fuel subsidies can be directed towards developing renewable or low-carbon alternatives, thereby contributing to meet Malaysia’s pledge to be “a carbon neutral country by 2050 at the earliest”.

A woman carries an infant upon arrival from Jakarta

Uncertainties in Malaysia’s Economic Recovery

Cassey Lee

The war in Ukraine and the de-coupling of Russia from major economies are expected to dampen economic recovery and generate inflationary shocks. If inflation in Malaysia worsens, policymakers may have to implement a more restrictive monetary policy combined with fiscal stimulus funded by debt and petroleum royalties.