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2026-04-09 10:14:12
[Fitch Solutions' GeoQuant: High Oil Prices Exacerbate Fiscal and Political Risks in Malaysia] (1) GeoQuant, a subsidiary of Fitch Solutions, stated that high oil prices are putting pressure on Malaysia's subsidy policies, leading to rising fiscal and political risks in the country. (2) The government has already cut subsidized fuel quotas by one-third to control costs and maintain fiscal discipline, but public concerns about fuel prices will become more acute ahead of state elections. (3) If oil prices fall, a prudent policy response could win Prime Minister Anwar Ibrahim's support and even lead to an early federal election; however, if oil prices remain high, the government may be forced to take more austerity measures, putting pressure on state elections and postponing the federal elections originally scheduled for February 2028.
