PETALING JAYA: The government’s targeted subsidy initiatives are projected to save the nation approximately RM15.5 billion annually, ensuring that public funds are directed to those who need them most, said Prime Minister Datuk Seri Anwar Ibrahim.
Speaking during the tabling of Budget 2026 in Parliament today, Anwar said previous governments had acknowledged the need for targeted subsidies, but implementation was delayed due to a lack of political will.
“We believe subsidies are a privilege meant for Malaysians — not for foreigners, nor for large corporations.
“The government is committed to ensuring that public funds reach the people who truly need them,” he said.
He highlighted that measures such as floating chicken and egg prices have saved RM1 billion each, while the targeting of subsidies and restructuring of average electricity tariffs has saved RM6 billion, with 85% of users facing no tariff increases and some even enjoying lower bills.
He said that targeting diesel subsidies has saved RM5 billion, with public transport operators, fishermen, and certain logistics sectors continuing to enjoy subsidised rates.
Individual vehicle owners, farmers, and smallholders also receive RM200 per month.
“Targeted RON95 petrol subsidies are expected to save at least RM2.5 billion, while citizens continue to benefit from petrol priced at RM1.99 per litre under the BUDI95 programme, which now serves over 10 million Malaysians,” Anwar said.
The government is updating its database of 16.5 million eligible citizens to provide additional quotas for 23,000 registered boat owners and more than 52,000 active e-hailing drivers.
Anwar said the savings from targeted subsidies will translate into more funds for social welfare, greater allocations to ease the cost of living, and higher-quality investments in public infrastructure, reinforcing the government’s commitment to improving the lives of ordinary Malaysians.
