IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v9y2025issue-5p5294-5302.html
   My bibliography  Save this article

Research Report: Impact of Diesel Subsidy in Malaysia 2024

Author

Listed:
  • Dr. Chris Daniel Wong, PhD

    (Chairman Emeritus Malaysia Digital Chamber of Commerce, Malaysia Fellow Chartered Institute of Digital Economy, Malaysia)

  • Dr. Nicole Foo, DBA

    (Fellow Chartered Institute of Digital Economy, Malaysia)

  • Dr. Farzana Nazera

    (PhD Programme Leader, Spectrum International University College, Malaysia)

Abstract

Diesel subsidies have long played a pivotal role in supporting Malaysia’s transportation, logistics, and industrial sectors by reducing fuel costs and stabilizing prices. While these subsidies have historically eased financial burdens on businesses and consumers, they pose significant challenges in terms of economic sustainability and environmental impact. As Malaysia transitions toward a more sustainable and fiscally responsible energy policy, it is critical to understand how businesses perceive the current diesel subsidy framework. This study presents findings from a nationwide survey of Malaysian businesses, aiming to evaluate their awareness, economic dependence, and attitudes toward the diesel subsidy program. The research investigates how subsidies influence operational costs, profitability, and long-term growth, while also capturing business sentiment on the potential shift from broad-based subsidies to targeted support mechanisms. The study draws responses from a diverse range of industries, including logistics, renewable energy, printing, retail, and education consultancy. The insights derived from this research offer valuable guidance for policymakers to reform the subsidy system in a way that balances economic priorities with environmental and fiscal sustainability.

Suggested Citation

  • Dr. Chris Daniel Wong, PhD & Dr. Nicole Foo, DBA & Dr. Farzana Nazera, 2025. "Research Report: Impact of Diesel Subsidy in Malaysia 2024," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(5), pages 5294-5302, May.
    • Handle: RePEc:bcp:journl:v:9:y:2025:issue-5:p:5294-5302
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-9-issue-5/5294-5302.pdf
    Download Restriction: no
    File URL: https://rsisinternational.org/journals/ijriss/articles/research-report-impact-of-diesel-subsidy-in-malaysia-2024/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kenneth Gillingham & David Rapson & Gernot Wagner, 2016. "The Rebound Effect and Energy Efficiency Policy," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 10(1), pages 68-88.
    2. Sovacool, Benjamin K., 2017. "Contestation, contingency, and justice in the Nordic low-carbon energy transition," Energy Policy, Elsevier, vol. 102(C), pages 569-582.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fankhauser, Samuel & Jotzo, Frank, 2017. "Economic growth and development with low-carbon energy," LSE Research Online Documents on Economics 86850, London School of Economics and Political Science, LSE Library.
    2. De Borger, Bruno & Mulalic, Ismir & Rouwendal, Jan, 2016. "Measuring the rebound effect with micro data: A first difference approach," Journal of Environmental Economics and Management, Elsevier, vol. 79(C), pages 1-17.
    3. Katris, Antonios & Turner, Karen, 2021. "Can different approaches to funding household energy efficiency deliver on economic and social policy objectives? ECO and alternatives in the UK," Energy Policy, Elsevier, vol. 155(C).
    4. Figus, Gioele & Swales, J.Kim & Turner, Karen, 2018. "Can Private Vehicle-augmenting Technical Progress Reduce Household and Total Fuel Use?," Ecological Economics, Elsevier, vol. 146(C), pages 136-147.
    5. Louis Sears & Joseph Caparelli & Clouse Lee & Devon Pan & Gillian Strandberg & Linh Vuu & C. -Y. Cynthia Lin Lawell, 2018. "Jevons’ Paradox and Efficient Irrigation Technology," Sustainability, MDPI, vol. 10(5), pages 1-12, May.
    6. Rabindra Nepal & Muhammad Indra al Irsyad & Tooraj Jamasb, 2021. "Sectoral Electricity Demand and Direct Rebound Effects inNew Zealand," The Energy Journal, , vol. 42(4), pages 153-174, July.
    7. Juliana Silveira dos Santos & Fausto Miziara & Hayla da Silva Fernandes & Renato Cezar Miranda & Rosane Garcia Collevatti, 2021. "Technification in Dairy Farms May Reconcile Habitat Conservation in a Brazilian Savanna Region," Sustainability, MDPI, vol. 13(10), pages 1-15, May.
    8. Lemoine, Derek, 2020. "General equilibrium rebound from energy efficiency innovation," European Economic Review, Elsevier, vol. 125(C).
    9. Chien, Fengsheng & Anwar, Ahsan & Hsu, Ching-Chi & Sharif, Arshian & Razzaq, Asif & Sinha, Avik, 2021. "The role of information and communication technology in encountering environmental degradation: Proposing an SDG framework for the BRICS countries," Technology in Society, Elsevier, vol. 65(C).
    10. Gunnarsdottir, I. & Davidsdottir, B. & Worrell, E. & Sigurgeirsdottir, S., 2022. "Indicators for sustainable energy development: An Icelandic case study," Energy Policy, Elsevier, vol. 164(C).
    11. Andrei, Mariana & Rohdin, Patrik & Thollander, Patrik & Wallin, Johanna & Tångring, Magnus, 2024. "Exploring a decarbonization framework for a Swedish automotive paint shop," Renewable and Sustainable Energy Reviews, Elsevier, vol. 200(C).
    12. Gregory Casey, 2024. "Energy Efficiency and Directed Technical Change: Implications for Climate Change Mitigation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 91(1), pages 192-228.
    13. Genc, Talat S., 2024. "Energy Transition and the role of new natural gas turbines for power production: The case of GT11N2 M generators," Energy Economics, Elsevier, vol. 131(C).
    14. Huang, Robert & Kahn, Matthew E., 2024. "An economic analysis of United States public transit carbon emissions dynamics," Regional Science and Urban Economics, Elsevier, vol. 107(C).
    15. Jianglong Li & Zhi Li, 2018. "Understanding the role of economic transition in enlarging energy price elasticity," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 26(2), pages 253-281, April.
    16. Liu, Hongxun & Du, Kerui & Li, Jianglong, 2019. "An improved approach to estimate direct rebound effect by incorporating energy efficiency: A revisit of China's industrial energy demand," Energy Economics, Elsevier, vol. 80(C), pages 720-730.
    17. Berner, Anne & Bruns, Stephan & Moneta, Alessio & Stern, David I., 2022. "Do energy efficiency improvements reduce energy use? Empirical evidence on the economy-wide rebound effect in Europe and the United States," Energy Economics, Elsevier, vol. 110(C).
    18. Arik Levinson, 2019. "Energy Efficiency Standards Are More Regressive Than Energy Taxes: Theory and Evidence," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 6(S1), pages 7-36.
    19. Gürsan, C. & de Gooyert, V., 2021. "The systemic impact of a transition fuel: Does natural gas help or hinder the energy transition?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 138(C).
    20. Díaz Antonia & Puch Luis A., 2019. "Investment, technological progress and energy efficiency," The B.E. Journal of Macroeconomics, De Gruyter, vol. 19(2), pages 1-28, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:9:y:2025:issue-5:p:5294-5302. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.