ASSESSMENTS

Malaysia: The Political Concerns Behind Fuel Price Reforms

Jun 3, 2008 | 17:01 GMT

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Summary

Malaysia plans to allow fuel prices to rise to market levels beginning in August in an effort to reduce government outlays on subsidies, Domestic Trade Minister Shahrir Samad told reporters June 3. The Malaysian leadership's key goals in bringing up fuel price reforms now are to divert attention from internal fractures, rally its troops around a major initiative and prove to the public that it is capable of effective governance.

Malaysia plans to allow fuel prices to rise to market levels beginning in August -- a decision fueled more by political concerns than by energy concerns....

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