Malaysia backs away from unpopular fuel price hikes

Malaysia's government said on Thursday it had abandoned plans to hike fuel prices, a move that cast doubt on its commitment to cutting its budget deficit and its willingness to implement unpopular economic reforms.

Fuel subsidy cuts were a cornerstone of Prime Minister Najib Razak's plans to cut the budget deficit to 5.6 percent of gross domestic product this year from a morethan 20-year high of 7.4 percent in 2009.