Targeted fuel subsidies to drive long-term growth

“Removal of subsidies in phases and cash transfers to support the lower income group can help mitigate higher pump prices," Amro chief economist Hoe Ee Khor said.

KUALA LUMPUR: The cut in diesel and soon petrol subsidies will go a long way towards sustaining the country’s economic growth in the longer term.

According to the Asean+3 Macroeconomic Research Office (Amro), savings from the implementation would be well received by the investment community.