Malaysia is expected to fork out higher total subsidies this year, to the tune of RM71 billion, while petrol subsidies alone will touch RM30 billion amid the rise in crude oil prices.

Speaking at the World Economic Forum's Annual Meeting in Davos, Switzerland, Finance Minister Tengku Zafrul Abdul Aziz said the higher subsidies had resulted in a lower core inflation rate of 2.3 percent.

Although inflation is on the rise, he said Malaysia is...