Subsidy reforms needed although painful

HLIB Research said should fuel subsidies be completely removed for RON95 and diesel, this will yield the government annual savings of RM28.7bil.

PETALING JAYA: The implementation of subsidy reforms in Malaysia, particularly where fuel is concerned, have become a sore topic for many as the issue is continuously politicised.

However, Hong Leong Investment Bank (HLIB) Research said while it is tough to move from a blanket approach to a targeted one, it is a necessary pain to shift towards ensuring the country’s fiscal health perks up.