Anwar announced the implementation of targeted fuel subsidies and the removal of subsidies for the rich and foreigners

Malaysian Prime Minister Anwar Ibrahim announced the introduction of targeted fuel subsidies, starting with diesel, which are expected to save about RM4 billion (S $1.47 billion) a year.

Speaking on live television on Tuesday, Anwar said the new measure would not affect low-income groups, but would eliminate fuel subsidies for the rich and foreigners, "and we will return this savings to those in need."

This measure is currently targeted at West Malaysia and will not be implemented in East Malaysia for the time being because almost every household in East Malaysia uses diesel fuel and many people will be affected once it is implemented.

To curb sudden price increases of goods and services, the Government will continue to provide diesel subsidy to businesses using commercial vehicles, including 10 types of public transport under the Diesel Control System (SKDS) and 23 types of transport.

Anwar also said that bus, taxi and certain categories of fishermen would continue to enjoy the diesel subsidy provided by the government. Details of the measure will be announced.

In addition, he promised to take tough action against the perpetrators of attacks, extremists and terrorist incidents. "I promise to hold meetings with the security forces to crack down on these groups and the situation will be calm and under control."

Mr Anwar also mentioned in his message that Malaysia's economy grew by 4.2 per cent in the first quarter of this year, while total trade increased by 8.3 per cent to RM912.27 billion (S $261.56879 million).