Global Inflation Crisis Coverage - Malaysia
While most economics are reeling in shock from the high oil prices, and several scrambling to seek remedies to the inflation crisis, Malaysia took a bold step forward by reducing its heavy fuel subsidies last week, leading to an immediate fuel price hike of 41% .
The result? Widespread resentment and pockets of protests across the country. While such a move is unpopular, it was only a matter of time when the government realized that much of their annual budget has gone to subsidizing fuel price, which they can no longer continue given the progressive increase in oil prices over the past few months. In fact, the reduction in fuel subsidies is said to save the government up to US$4.3 billion, in which part of this savings can be passed on to subsidize other more crucial necessities to tide the country and its people over this troubled times.
Tags: economics, energy crisis, global inflation crisis, inflation, oil prices, price hike
