Malaysian minister defends steep fuel price hike

A Malaysian minister on Friday defended a 41 percent fuel price hike, in the face of public anger and street protests, but said no further increases were likely in the near future.
"I think it is wise, this is the first time we have come to grips with the subsidy system," Domestic Trade Minister Shahrir Samad said of this week's unpopular decision to cut extensive fuel subsidies.
Shahrir dismissed small rallies organised by the opposition this week, and a large public demonstration being planned for July 12.
"It is only natural that groups will take advantage of this so it is the reality that any democratic government will have to take," he said.
"Situations like this are always available as opportunities for our political enemies."
Outrage over the fuel price hike threatens to compound problems facing Prime Minister Abdullah Ahmad Badawi, who has been fighting to keep his job since an unprecedented setback for the ruling coalition in March general elections.
The government was punished by voters for failing to rein in the rising cost of food and fuel, and it lost a third of parliamentary seats and five states in its worst results in half a century.
Shahrir said he expected that price controls will be completely removed by August. He has previously said that would likely see petrol jump to 3.00-4.00 ringgit per litre, from 2.70 ringgit (0.84 dollars) currently.
Before Thursday's price hike, petrol cost 1.92 ringgit, among the cheapest in Asia. But the minister indicated there would be no more increases in the next few weeks.
"I don't think prices will be reviewed any time soon," he said.
"For now it will remain at the 2.70 level because if we keep changing the price, it would be difficult to administrate the returning of subsidies."
Malaysia's opposition figurehead Anwar Ibrahim said Friday that a "multi-racial, multi-religious" opposition was emerging in his country for the first time to challenge the ruling party.
The 60-year-old former deputy prime minister said many Malaysians of all races and religions were "sick and tired of corruption, of the destruction of the judiciary."
There is a "multi-racial, multi-religious cohesion of emerging forces in Malaysia which is clamouring for change," Anwar told an academic forum in the Philippines.
Recently there have been growing fears over "Islamisation" of Malaysia and the increasing polarisation of the three main ethnic communities.
About 60 percent of Malaysia's 27 million people are ethnic Malay Muslims. The country's minority Chinese and Indians are mostly Buddhists, Hindus or Christians.
Anwar, once heir-apparent to long-time former premier Mahathir Mohamad, spent six years in jail on sex and corruption charges, but now leads a resurgent opposition