Securing public support for fuel subsidy reform: Experimental and policymaker insights from Malaysia

Abstract:

Fossil fuel subsidies pose a significant barrier to decarbonisation goals, yet their removal is challenging due to concerns about public opposition and the potential impact on vulnerable groups. In Malaysia, where a petrol-subsidy reform has been announced but not yet implemented, we use a mixed-methods approach, combining an online survey experiment (N=1,208) and interviews with policymakers (N=12), to identify how messaging can build support. Results show that framing the reform as a redistributive measure can increase public support by 7 percentage points from a baseline of 24%, while also decreasing opposition. A direct comparison of the treatments shows that the redistributive frame significantly outperforms the environmental frame by 6.2 percentage points. Policymakers acknowledge the challenges posed by the unpopularity of subsidy reforms, but underscore the critical role of strategic communication in addressing public concerns. Transparent, resonant narratives offer policymakers a scalable and cost-effective way to secure public buy-in in the critical post-announcement, pre-implementation phase of fuel subsidy reform.