- KUALA LUMPUR: Malaysia's cabinet discussed proposals to cut costly subsidies on Wednesday but did not talk about how and when cuts would be implemented and a firm decision is still some time away, a government source said.
"We still have to wait for the public feedback and further discuss how all these proposals can be adjusted and implemented. It may take some months," said a government official who had been briefed on the cabinet's subsidy discussions.
Malaysia's government has mounted a publicity campaign to sway the public in favor of cutting subsidies for fuel, food, electricity and other staples.
According to government data, subsidies consumed 15.3 percent of the federal government's operating spending in 2009, hitting 24.5 billion Malaysian ringgit ($7.28 billion) as the country's budget deficit soared to a 20-year high of 7 percent of gross domestic product.
A government think tank charged with cutting subsidies has identified 74 billion ringgit in subsidy payments annually, a figure that has been artificially boosted by including a wide range of social benefits, economists say.
