Diesel prices in Malaysia have increased by more than 50 percent as decades-long fuel subsidies were eliminated.

The country has long heavily subsidized prices of fuel, cooking oil, and rice among other basic items, but has seen costs rise dramatically due to increased commodity prices. The cost of the diesel subsidy has increased more than tenfold since 2019.

"In fact, we have said that all prime ministers before this had agreed on the targeted subsidy, but there was no political will to implement it because of the risks involved," Prime Minister Anwar Ibrahim said. "However, to save the country, we have no choice."

The removal of the blanket subsidy is expected to save the government around RM4 billion ($848m) a year however, diesel for low-income groups, school buses, and ambulances will continue to be subsidized.

The increase in price will impact the cost of maintaining and using diesel generators at data center sites in the country.

The nation has increasingly been eyed as a major data center market, particularly since regional leader Singapore banned new developments.

In May, Google and Microsoft announced $2 billion in cloud investments in the country, with Microsoft twice buying land in Johor a month later. In June, ByteDance promised another $2 billion.

Other developers and operators in the country include PDG, AirTrunk, Equinix, Keppel, ChinData's Bridge DC, Sime Darby, Jakel, and Yondr, amongst others.

Last month, the country also announced a $107bn investment in its semiconductor industry.