Report: Malaysia's reduction of RON95 gasoline subsidy is not expected to disrupt consumption trends.

RHB IB analyst Soong Wei Siang stated in a report that the Malaysian government's reduction in RON95 petrol subsidy may not significantly disrupt consumption trends, as the majority of users consume less than the adjusted quota. As oil prices rise, Malaysia is reducing the monthly RON95 petrol subsidy quota per person from 300 liters to 200 liters. He mentioned that policy support and stable domestic demand may support the profitability of the consumption industry, but ongoing tensions in the Middle East may bring inflation risks. He added that companies with defensive qualities and profit sources focused on the domestic market are still preferred, as they are believed to be less affected by the increasing geopolitical uncertainties. RHB maintains an overweight rating on the Malaysian consumption industry and lists Nestle, Mr. D.I.Y. Group, Eco-Shop Marketing, Farm Fresh, and AEON Co. as preferred stocks.