0316 GMT - Malaysia's recent diesel subsidy reform could have minimal direct impact on inflation, as most eligible diesel users will continue to receive subsidized fuel while logistics operators remain protected, TA Securities analyst Shazma Juliana Abu Bakar says in a note. Malaysia will set diesel prices at market rates nationwide from July 1, while eligible citizens can buy subsidized diesel at MYR2.10 a liter. She expects transportation costs and broader price pressures to remain contained, noting diesel accounts for just 0.2% of the consumer price index basket. The reform should help preserve household purchasing power, although its impact on overall consumption is likely limited by the relatively small beneficiary base, she adds. TA Securities maintains its 2026 inflation forecast of 2.1%-2.6% and GDP growth forecast of 4.3%-4.7%. (yingxian.wong@wsj.com)

(END) Dow Jones Newswires

June 22, 2026 23:16 ET (03:16 GMT)

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