Amir said the government was still in the midst of formulating a suitable system to implement the targeted subsidy, and that it would be tabled to the Cabinet once ready, Berita Harian reported.

“The prime minister has already said the targeted RON95 subsidy will be carried out this year.

“But similar to our approach with the targeted diesel subsidy, we need to ensure that we have the right mechanism to implement it so that we don’t burden the rakyat.

“Policy-wise, the prime minister has already said the government will ensure that most Malaysians aren’t affected by the (targeted) RON95 subsidy,” the minister was quoted as saying.

Amir previously said the subsidy rationalisation would begin in the second half of the year, although no date was specified.

Prime Minister Anwar Ibrahim said the cuts would mainly target foreigners and Malaysia’s top 5% to 10% of income earners.

He said the government’s move towards subsidy rationalisation was a critical step to ensure that national resources are effectively channelled to benefit the lower-income group.