Asian Insider
Soaring subsidy bill forces KL to go on austerity drive
But cost-saving measures could hurt govt's election prospects, with polls due in a year
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Malaysia's soaring subsidy bill is forcing the government to take extreme measures as it embarks on an austerity drive that will take its toll politically ahead of an election due in a year.
Subsidies, including social assistance such as direct cash transfer to the nation's poor, are expected to breach a record RM80 billion (S$25 billion) - a whopping 160 per cent higher than the budgeted RM31 billion - this year. Despite this support, the rising cost of living is still the main issue amid post-Covid-19 recovery.
