Ahmed Razman Abdul Latiff of Putra Business School said postponing the targeted subsidy scheme was unnecessary since 85% of Malaysians would not be affected and would still be able to purchase RON95 at a subsidised price.

“The government would also achieve greater savings, which could be used to support industries impacted by the US tariffs,” he told FMT.

“As for electricity tariffs, the government can implement fiscal initiatives to support the affected industries.”

He was responding to calls by several MPs during a special parliamentary sitting on the US tariffs, which have been deferred for 90 days effective April 8.

Opposition leader Hamzah Zainudin and DAP’s Bagan MP Lim Guan Eng were among those who had raised the proposal, citing concerns about the economic impact of the US’s 24% tariff on products imported from Malaysia.

The duo from rival parties also called for a delay to the hike in electricity tariffs, scheduled for July.

When tabling the 2025 budget last year, Prime Minister Anwar Ibrahim had announced the government’s plan to implement a targeted subsidy for RON95 fuel by the middle of the year.

He said that 85% of Malaysians would not be affected by the move.

Barjoyai Bardai of Malaysia University of Science and Technology said that delaying the targeted subsidy scheme by just six months could result in a missed opportunity to save RM2.5 billion.

He said the government might be in a financial position to afford paying that cost, given the nation’s healthier fiscal outlook and the downward trend in global crude oil prices, from US$80 per barrel last year to US$63 currently.

“However, repeated delays ultimately will not bring any positive outcomes, considering that the government has already waited over 15 years to implement this targeted subsidy,” he said.