Reforming subsidy system will be beneficial in long term, say experts

Rationalising spending: The government announced in Budget2024 plans to implement trageted subsidies for diesel and RON95 petrol.

PETALING JAYA: Short-term pain for long-term gain - that’s how economists and consumers groups are describing the government’s move to reform the subsidy system this year.

The short term pain will be mostly felt by high and upper middle income households as the government ends blanket subsidies for petrol and diesel, which the Prime Minister has said costed the government’s RM81bil in 2023.