Fuel Price Protests

The government’s decision to continue its withdrawal of fuel subsidies and raise pump prices by another 23% has sparked Malaysia’s first major protest under Prime Minister Abdullah Ahmad Badawi. Nearly 1,000 protesters gathered in Kuala Lumpur with some calling for the prime minister to step down. The protests should not, however, pose a significant threat to the government’s position given the necessity of the fuel price reforms. Global oil price rises mean the reforms are needed in order to relieve the US$1.2bn burden that fuel subsidies currently impose on budget finances

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