Targeted Fuel Subsidies Off The Mark

The Malaysian government is expected to spend RM28 billion on fuel subsidies this year due to rising crude oil prices, compared to RM11 billion the previous year. In light of this, the government is mulling a proposal to impose targeted fuel subsidies for lower-income groups. Can an effective targeted subsidy mechanism be implemented, and what would this look like? We discuss with economist Dr. Geoffrey Williams.

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