KUALA LUMPUR: The government’s targeted subsidy measures announced in Budget 2026 will generate annual savings of RM15.5 billion, reflecting a strong commitment to national economic empowerment.
Universiti Putra Malaysia Putra Business School MBA programme director Professor Dr Ahmed Razman Abdul Latiff said this initiative benefits the entire population, including B40, M40 and higher-income groups through various targeted assistance forms.
He explained that this approach helps the government save funds and ensures every ringgit of revenue reaches the people directly.
“Previously, although the country’s revenue had increased, part of it went into the wrong hands due to leakages, wastage and corruption,“ he told Bernama.
Ahmed Razman added that targeted subsidies enable the government to avoid increasing existing tax rates or introducing new taxes to boost national revenue.
“This positive move prevents additional tax burdens on people while allowing them to benefit from subsidy rationalisation savings,“ he said.
Prime Minister Datuk Seri Anwar Ibrahim announced during the Budget 2026 tabling that comprehensive subsidy targeting would save approximately RM15.5 billion annually.
The Finance Minister said these savings will allow more allocations for welfare programmes, cost-of-living support and quality infrastructure investments.
Agrobank group president and chief executive officer Datuk Tengku Ahmad Badli Shah Raja Hussin noted Budget 2026 allocated RM1.1 billion to Agrobank for supporting agropreneurs.
“This substantial funding empowers industry players while boosting productivity and strengthening agriculture as a national food security pillar,“ he stated.
He emphasised Agrobank’s commitment to partnering with the government to advance this critical sector beyond just financing provision.
“Budget 2026 represents more than figures; it embodies hope and opportunity for farming communities throughout the agro-food sector,“ he added. – Bernama
