Multi-tiered fuel subsidy good for Malaysia in revamp, says economist

PETALING JAYA: As the current fuel-subsidy scheme in Malaysia undergoes a possible revamp, one economist has voiced his support for introducing a multi-tiered mechanism, which could presumably help optimise the Government’s Budget.

According to Alliance Research chief economist Manokaran Mottain, a tiered fuel subsidy structure would serve the twin objectives of budget consolidation and plugging subsidy leakages. “The Government can provide targeted subsidies in the form of a percentage rebate off the market fuel price to eligible individuals according to their household income classes,” Manokaran said in his report yesterday.