Malaysia Morning Wrap | HeiTech Padu Secures RM892.2 Million NIISe Project Amid Record Share Prices

The Malaysian government is gearing up for potential public dissent as it plans to phase out petrol subsidies by mid-2025, a move that is crucial for demonstrating its commitment to fiscal reform but has been postponed due to its political sensitivity. The proposed changes include implementing a dual pricing strategy for RON95, the nation's most commonly used petrol. According to Economy Minister Rafizi Ramli, under the new system, the top 15% income earners will pay market prices, while the remainder will continue to benefit from the existing subsidized rates. This adjustment is projected to save the government approximately RM8 billion ($1.9 billion) annually. However, Minister Ramli cautioned that this could inadvertently cause secondary price increases and potentially accelerate inflation rates.

According to recent customs data, China's crude oil imports from Malaysia, which ranks as its third-largest supplier, increased by 17.5% in September compared to the same month last year. This rise occurred despite a general slowdown in Chinese imports. In September, Malaysia, known as a key transshipment hub for sanctioned oil from Iran and Venezuela, exported 6.12 million metric tonnes, equivalent to 1.49 million barrels per day (bpd). This represents an increase from August's 1.77 million bpd. For the initial nine months of the year, imports from Malaysia surged by 22% over the same period in 2023, totaling 49.29 million tonnes, as reported by the General Administration of Chinese Customs.