Subsidies need to be phased out: Malaysia's PM

Malaysia's prime minister Najib Razak on Monday said that subsidies for industries must be restructured and gradually phased out to promote private investments.                                           

"Giving freer rein to private initiative and market forces... has important consequences," he said in a speech at an economic conference.                                           

"We may not be able to afford over-subsidised and under-priced energy," Najib added.                                           

Subsidies make up about 2% of Malaysia's gross domestic product with the country expected to spend 21 billion ringgit ($6.09 billion) this year on fuel, gas and food subsidies.