Malaysia to Spend RM35 Billion on Oil Subsidy

The Malaysian government is expected to spend over RM35 billion in subsidy for gasoline fuel in the country if oil price is to hover around US$100. Asian countries are well-known for providing oil subsidies but as oil prices becoming too expensive with energy prices booming everywhere, it is unlikely for any of the governments to provide full subsidy as high as before. Read the Asian countries oil subsidy news and forecast here.

The Malaysian government however said that the budget deficit does not impact on how the government would spend to boost the nation's GDP growth. Malaysian analysts expecting around 5% GDP growth for 2008.