Malaysia: Manageable subsidy costs and resilient funding – BNP Paribas
BNP Paribas economists note that Malaysia has kept stable the price of RON 95 fuel used mainly by households, limiting the fiscal impact of subsidies to about 0.2% of GDP if Oil stays below USD 100.
The stability of fuel prices in Malaysia may lead to a strengthening of the Malaysian Ringgit as investor confidence grows. However, if oil prices rise significantly, it could lead to increased inflationary pressures.
BNP Paribas economists note that Malaysia has kept stable the price of RON 95 fuel used mainly by households, limiting the fiscal impact of subsidies to about 0.2% of GDP if Oil stays below USD 100.
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