No subsidy cuts for now, government still able to handle the pressure - Minister

THERE are no plans for now to reduce subsidies, and the government is monitoring the situation in the Middle East closely, said Minister of Investment, Trade and Industry, Datuk Seri Johari Abdul Ghani.

“We understand the growing concerns and are assessing how long the impact may last before making any decision,” he said.

For now, he said, there is no decision to cut subsidies, and the Ministry of Finance will provide regular updates.

"If it is only for the next two or three months, I believe the government can still handle the pressure.

“However, this war has created widespread concern globally, affecting not only countries in the Middle East but also ASEAN economies and Europe,” he said.

"When there is uncertainty in the economy, people tend to hold back on spending because they are unsure about the future.

"Second, if oil prices rise, the impact is not limited to oil alone but will have a major effect on industries that rely heavily on energy.

"For now, the government can still hold out for the next two or three months. We will have to see how the situation develops," he added. – March 14, 2026