Anwar said he was yet to be “convinced” of the effectiveness of the targeted subsidy mechanism as it was a “complex” matter.

“If (the mechanism) is ready, it can be implemented tomorrow (but) we are still working on it.

“I don’t want to make any (false) promises but we are working as fast as we can,” he told reporters at an event here today.

Anwar, who is also the finance minister, reiterated that targeted subsidies must benefit those most in need rather than the wealthy.

Yesterday, he said Putrajaya spent RM66.3 billion in subsidies last year, largely to offset prices of fuel, electricity and poultry.

The subsidies included those for petrol, diesel, cooking gas, cooking oil, electricity, chicken and eggs, he said.

On Tuesday, deputy finance minister Ahmad Maslan said progress was being made with reforms to targeted subsidies.

He said the reforms were devised to save “billions of ringgit” a year.

Ahmad said the targeted subsidy mechanism was 75% complete, adding that it could be announced when the next federal budget is presented in Parliament later this year.