A Rakuten Trade analyst said Malaysia’s recent diesel subsidy reform may have only a minimal direct impact on inflation.
According to Jin10, analyst Shazma Juliana Abu Bakar said in a report that most eligible diesel users will continue to receive subsidized fuel, while logistics operators will also be protected.
Malaysia will set diesel prices nationwide at market rates starting July 1, and eligible citizens will be able to buy subsidized diesel at 2.10 Malaysian ringgit per liter.
The analyst forecast that transport costs and broader price pressures will remain manageable, noting that diesel accounts for only 0.2% of the consumer price index basket.
She added that the reform should help sustain household purchasing power, but its impact on overall consumption may be limited because the beneficiary group is relatively small.
Rakuten Trade maintained its forecast for Malaysia’s 2026 inflation at 2.1% to 2.6% and GDP growth at 4.3% to 4.7%.
Malaysia Diesel Subsidy Reform May Have Limited Inflation Impact, Analyst Says
2026-06-23 11:29:56
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