High oil prices bring fiscal and political risks to Malaysia

```htmlGolden Ten Data reported on April 9 that GeoQuant, a risk analysis company affiliated with Fitch Ratings Agency, stated that surging oil prices are putting pressure on subsidy policies ahead of state elections, and Malaysia is facing increasing fiscal and political risks. The government has reduced fuel subsidy quotas by one third to control costs and maintain fiscal discipline. However, public concerns over fuel prices may intensify as elections approach. If oil prices fall, prudent policy responses could provide support for Prime Minister Anwar Ibrahim and potentially pave the way for an early federal election. However, if oil prices remain high, the government may be forced to adopt tighter fiscal measures, creating pressure on state elections and postponing the federal election originally scheduled for February 2028.```