SHAH ALAM, Oct 10 — Subsidy rationalisation efforts to a more targeted approach is set to save the federal government about RM15.5 billion a year, Prime Minister Datuk Seri Anwar Ibrahim said today.
Anwar, who is also finance minister, said it is the government’s goal to ensure public funds reach the people who truly need them.
“All previous administrations have acknowledged the need to implement targeted subsidies. However, this effort was delayed due to the lack of strong political will.
“The essence of subsidies is that they are a privilege for Malaysians, not for foreigners or large corporations,” he said when tabling Budget 2026 in Parliament today.
Among others, Anwar said the implementation of the BUDI Madani RON95 targeted subsidy (BUDI95) is projected to save at least RM2.5 billion, with the public to continue enjoying the fuel at a lower price of RM1.99 per litre.
“The BUDI95 initiative is running smoothly, with more than 10 million Malaysians enjoying RON95 at RM1.99 per litre.”
Anwar said the government’s diesel subsidy targeting exercise has saved Putrajaya RM5 billion.
Meanwhile, the public transport, fisheries, and certain logistics sectors will continue to receive subsidised diesel, he said, adding that individual vehicle owners, farmers, and smallholders are given RM200 per month.
“The floating of chicken prices has saved RM1 billion, while prices remain controlled. The floating of egg prices has also saved RM1 billion.
“Meanwhile, the targeting of subsidies and restructuring of average electricity tariffs have saved RM6 billion. In fact, 85 per cent of consumers have not faced any increase in tariffs, and some are even enjoying lower bills.
“Overall, targeted subsidy measures have saved the nation about RM15.5 billion annually. Every ringgit saved means more funds for welfare, greater allocations to ease the cost of living, and increased investment in quality public infrastructure,” Anwar said.
