KUALA LUMPUR (July 2): There is no policy paper yet allowing the implementation of subsidy cuts for RON95, said Prime Minister Datuk Seri Anwar Ibrahim.

While there have been studies on shifting away from blanket subsidies towards a targeted approach for RON95, Anwar said the government intends to evaluate the outcomes of rationalising subsidies on electricity, chicken and diesel for now.

"We will first observe the impact and the people's reaction before discussing whether there is a need to implement targeted subsidies for RON95," Anwar told the Dewan Rakyat on Tuesday during the Prime Minister's Question Time.

Nevertheless, Anwar reiterated that government subsidies must not reach the ultra-rich and foreigners, and the government will not compromise on this stance.

"I am not rejecting the possibility of rationalising RON95 subsidies in the future, but the government's entire focus now is on addressing the diesel subsidy rationalisation," he said.

Following the diesel subsidy rationalisation that began earlier in June, the government's potential move to cut costly blanket RON95 subsidies is being closely watched by the market and investors.

Last week, Minister of Economy Rafizi Ramli said that the government is still examining the need to expand targeted subsidies to include RON95 petrol.