Malaysia to spend more on subsidies than development: PM - AFP

Malaysia says it will spend more money subsidising oil and gas this year than on developing the country with Prime Minister Abdullah Ahmad Badawi calling for a review of all major projects.

Abdullah said the government would spend 45 billion ringgit (14 billion dollars) on fuel subsidies this year, state news agency Bernama reported late Saturday.

This will exceed its annual 40 billion ringgit budget for major development and infrastructure projects under the country's ninth development plan.

"It is five billion ringgit more, we need to look for more money," Abdullah told the agency.

"As the government, we will try our best to ease this burden. We will not allow this problem to grow. We cannot wait and see any more. We have the political will to act to ease the burden on the people," he added.

Abdullah said with global oil prices hitting 124 dollars a barrel, the impact on Malaysians would be huge, Bernama reported.

[More at http://news.my.msn.com/regional/article.aspx?cp-documentid=1393787]