KUALA LUMPUR, May 21 (Reuters) - Malaysia will introduce subsidy cuts on diesel, aiming to save approximately 4 billion ringgit ($852.88 million) annually from the move, Prime Minister Anwar Ibrahim announced on Tuesday.
Anwar has repeatedly vowed to shift away from blanket subsidies to a targeted system that mainly aids low-income groups.
Malaysia subsidises fuel, cooking oil, and rice, among other items, but rising commodity prices has seen that expense climb to record levels in recent years, straining the government's coffers.
The targeted diesel subsidy reform will only involve consumers in peninsular Malaysia to begin with, Anwar said in a televised address.
He did not state when the reforms will come into effect, saying further details will be announced later.
($1 = 4.6900 ringgit) (Reporting by Danial Azhar and Rozanna Latiff; Editing by Martin Petty)
