Focus on addressing leakage and wastage

I AM writing in response to the letter “Keep Subsidy in 2025” (The Star, Jan 13), particularly concerning the fuel subsidy for RON95. While fuel subsidies have historically helped stabilise prices and support the cost of living, it is crucial to assess their long-term impact on Malaysia’s economy and sustainability.

Although beneficial in the short term, fuel subsidies often lead to market distortions, discourage energy efficiency, and place a substantial burden on government finances. In the face of global economic challenges and our nation’s goal of fiscal consolidation, continuing with blanket fuel subsidies may strain public resources.