The government is in the midst of testing mechanisms for a targeted fuel subsidy system but no timeline has been set for its execution, according to the Finance Ministry.

Its minister Tengku Zafrul Abdul Aziz said the government is testing several proposals on the table to determine the best measures for execution before presenting one to the cabinet.

He noted a study by Bank Negara Malaysia which showed for every RM1 of fuel subsidy, 53 sen goes to the T20 group while 15 sen is utilised by the B40.