KUALA LUMPUR - The government is gradually phasing out the blanket subsidy system towards a targeted subsidy system, said Economy Minister Rafizi Ramli.
He said the phase-to-phase transition towards the targeted subsidy system requires the right financing and the right fiscal policy.
"Blanket subsidies have always been a feature in the Malaysian economy for decades. It is not an easy talk of trying to slowly bring everyone on board to phase out the blanket subsidies system but the government has been doing it.
"I felt very comforted because we have taken that step and held on steadfastly in the last six months. Retargeting the electricity subsidy has been done and we will move to diesel and gasoline subsidies next. It is also a challenge to strike a balance between financing and capability,” he said.
Rafizi said this at a ministerial session on "Policies and Pathways for Sustainable Asia” at the Energy Asia 2023 conference here, today. - BERNAMA