Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid believes the Madani government has been pragmatic, especially regarding fuel subsidies, where the current structure has been retained to minimise the impact of the oil shock. Consequently, the inflation rate shot up from 3.8% in May 2008 to 7.7%, 8.5%, and 8.5% in June 2008, July 2008, and August 2008, respectively. The targeted subsidy regime, with MyKad, is precise, which minimises the impact on middle and low-income individuals from higher fuel prices,” he told Bernama. “It seems there is an incentive for the Trump administration to stop the war, as the oil shock is taking a negative toll on the cost of living among Americans. “If oil prices stay high, the government needs to move beyond short-term stabilisation and tackle the fiscal risks from fuel subsidies.

Source: The Edge Markets March 26, 2026 08:43 UTC