KUALA LUMPUR: Malaysia may begin scaling back fuel subsidies for higher-income groups as early as next month, said its Economy Minister Akmal Nasrullah Mohd Nasir, as it grapples with rising costs driven by volatile global oil prices.

The review comes as the government’s monthly subsidy bill surged to about RM6 billion (US$1.5 billion) as of April, prompting policymakers to consider shifting towards more targeted support.

Malaysia expects the supply of fuel and other critical materials to remain uncertain for months, if not years – even if the ongoing conflicts in the Middle East are resolved, Akmal told CNA on Tuesday (May 5). 

“It’s very volatile now. That's why the estimation will go up on a weekly basis,” he cautioned.

He said the initial projections of about RM3 billion in subsidies per month when the Middle East crisis escalated in March have since risen significantly.

The sharp increase has put pressure on public finances and raised questions over how long the government can continue shielding consumers from higher fuel prices.