Government’s Subsidy Rationalisation Saves RM15.5 Billion A Year - PM Anwar

KUALA LUMPUR, Oct 10 (Bernama) -- The overall subsidy rationalisation implemented by the government has saved the nation about RM15.5 billion annually, says Prime Minister Datuk Seri Anwar Ibrahim.

When tabling Budget 2026 in the Dewan Rakyat today, he said every ringgit saved allowed more funds to be channelled towards welfare, cost-of-living support, and quality public infrastructure investments.

“All previous governments have acknowledged the need to implement targeted subsidies, but it was delayed due to the lack of strong political will.

“Subsidies are meant as a privilege for Malaysians, not for foreigners or large corporations. The government is targeting subsidies to ensure that public funds reach the people,” he said.

Among the measures taken, he said, were the floatation of chicken and egg prices, each saving RM1 billion, ensuring controlled poultry prices; and the rationalisation of electricity subsidies and tariff restructuring, yielding average savings of RM6 billion, while 85 per cent of consumers were not affected by tariff increases, with some even enjoying lower bills.

Additionally, Anwar, who is also the Finance Minister, said diesel subsidy rationalisation generated savings of RM5 billion, with the public transport, fishing and certain logistics sectors continuing to receive subsidised diesel, while RM200 monthly aid was provided to individual vehicle owners, farmers and smallholders.

He said the rationalisation of RON95 petrol subsidy (BUDI95) could potentially save at least RM2.5 billion, with the initiative allowing Malaysians to enjoy RON95 at RM1.99 per litre.

“The BUDI95 implementation has been smooth, with more than 10 million Malaysians enjoying RON95 at RM1.99 per litre. The database of 16.5 million eligible citizens is being updated to extend additional quotas to 23,000 registered boat owners and over 52,000 active e-hailing drivers,” Anwar said.

He added that the government’s effort to rationalise subsidies was necessary, as blanket subsidies had long benefitted foreigners and large companies.

Anwar said subsidies should remain a right and privilege for Malaysians, adding that the diesel subsidy savings also allowed the government to ease the people’s burden through initiatives such as the “SARA Untuk Semua” programme launched in August.

-- BERNAMA