Malaysia’s government spending in the first five months of 2024 accounted for 53.9% of the year’s target, indicating high expenditure. Officials are focusing on reforming fuel subsidies to achieve a budget deficit target of 4.3% of GDP. Citigroup noted that phasing out broad subsidies, particularly in fuel, is crucial, with potential savings of 3 to 4 bln ringgit expected from a proposed fuel price increase.