World Bank recommends Malaysia move towards targeted subsidies, more taxes in preparation of dwindling coffers

A petrol station worker helps to fill a customer’s tank in Kuala Terengganu on June 9, 2022. — Bernama photo

KUALA LUMPUR (Feb 3): The World Bank has recommended that Malaysia phase out blanket and broad-based subsidies and instead implement a targeted subsidy framework to better support its vulnerable citizens and rebuild its fiscal buffers at the same time.

In its “Malaysia Economic Monitor February 2023” report released today, the World Bank used fuel subsidies as an example, saying that targeted cash transfers to lower-income households could be introduced to replace the blanket fuel subsidies that are currently practiced.