Malaysia's fuel subsidy problem is causing Prime Minister Anwar Ibrahim to "urgently seek a solution."

Malaysia's plan to prevent wealthier drivers from benefiting from cheap, subsidized petrol has put Prime Minister Anwar Ibrahim in a politically sensitive position: how to define "rich" without penalizing households already struggling with rising living costs. The issue has become more pressing as the energy crisis in the Middle East strains government finances, forcing authorities to balance fiscal discipline with the risk of angering middle-class voters in a car-dependent country. Anwar stated that the government has, in principle, agreed to review fuel subsidies for higher-income Malaysians, but has not yet decided whether the threshold should apply to the top 20%, 15%, 10%, or 5% of earners. "We have not yet decided whether [it will be applied to] the T20, T15, T10, or T5 income groups, as we do not want it to [affect] the upper middle class," Anwar told reporters after an event on Sunday. The proposal, prepared by a Crisis Management Task Force led by former Petronas chief Hassan Marican under the National Economic Action Council, comes as Malaysia's fuel bill has surged due to higher crude prices and supply concerns around the Strait of Hormuz, a critical oil chokepoint. Malaysian Prime Minister Anwar Ibrahim says the government has agreed in principle to review fuel subsidies for higher-income Malaysians. Photo: dpa. Malaysia introduced the BUDI95 targeted fuel subsidy last September, allowing eligible citizens to purchase up to 300 liters of RON95 petrol per month at 1.99 ringgit (50 US cents) per liter, among the lowest pump prices in Asia.