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The subsidy dilemma

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FOR years, subsidies have been the “steroids” for Malaysia’s private consumption, which contributed almost 59% to the national gross domestic product (GDP) in 2021.

With 50% of working Malaysians earning less than RM2,442 per month in 2019, even before Covid-19 struck, subsidies have been crucial in ensuring that the locals could afford basic necessities.

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