Kuala Lumpur  - Malaysian Prime Minister Abdullah Ahmad Badawi on Monday urged government employees to contribute ideas on how the government can cut food and fuel subsidies as global oil prices soar.

Abdullah, who is also finance minister, said if the government continued to provide subsidies for food and oil, the country would suffer big economic losses.

"If the subsidies we pay exceed operating expenses, it will cause big problems to us later. Although we think nothing of that sort will happen to us now, one day we may have to face serious problems if we don't reduce subsidies," he told his department's staff early Monday.

Abdullah said the government hoped to continue providing subsidies to the poor while slashing subsidies for the higher earners.

"Various groups have given all sorts of ideas. I want you to do the same, try to think of constructive ideas and forward them to your department heads," he was quoted as saying by the official Bernama news agency.

He also urged all government employees to come up with ideas on ways to tackle rising inflation.

Malaysia recently announced it would spend at least 725 million ringgit (213 million dollars) to subsidize foreign rice imports to ensure the staple food remains affordable for consumers, while subsidized fuel prices are expected to cost the government 14 billion dollars this year. (dpa)