The government said in 2024 it had no plans to reintroduce the GST as an alternative to removing subsidies for petrol. Last year, it introduced a quota for purchases of subsidised RON95 transport fuel, as part of an effort to replace blanket subsidies with a more targeted aid system.
In a pre-budget statement released on Tuesday, the finance ministry said targeted subsidies had generated around 15.5 billion ringgit (US$3.8 billion) in savings a year, helping the budget absorb a ballooning subsidy bill due to higher energy costs from the Middle East conflict.
The government is expected to present its budget for 2027 in parliament on Oct 9, the ministry said.
The budget is expected to be framed around 10 focus areas, including narrowing regional development gaps, addressing cost-of-living pressures, and boosting investment growth, it said.
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