THE government has reaffirmed its commitment to prudent public spending, insisting that development projects and subsidies are designed to support economic growth and directly benefit Malaysians.
Deputy Finance Minister Lim Hui Ying stated today that under the Public Finance and Fiscal Responsibility Act 2023 [Act 850], the government maintains strict fiscal discipline, ensuring the fiscal deficit does not exceed three per cent of GDP, national debt remains below 60 per cent of GDP, government guarantees do not surpass 25 per cent of GDP, and annual development expenditure is at least three per cent of GDP.
“In line with Act 850, the government continues to strengthen its fiscal position by optimising public expenditure, including shifting from bulk subsidies to targeted subsidies,” Lim said.
“This ensures assistance reaches those who genuinely need it while reducing leakages from smuggling, allowing savings to be channelled into development programmes that directly benefit the people.”
The government has introduced several targeted subsidy initiatives. Electricity subsidies and tariff restructuring ensure that 85 per cent of Malaysians using less than 600 kilowatt-hours continue to receive benefits, with some households seeing lower bills.
Under the BUDI MySubsidi Diesel programme, 121,618 companies operating 355,074 vehicles benefit from diesel at RM2.15 per litre, helping to stabilise logistics costs and keep essential goods affordable.
Smallholder farmers and private diesel vehicle owners with annual incomes below RM100,000 receive RM200 monthly, or RM2,400 annually, under BUDI Individu, while 180,000 registered small-scale farmers benefit through BUDI Agri-Komoditi.
For petrol subsidies, the BUDI MADANI RON95 initiative, launched on 30 September 2025, allows Malaysian citizens aged 16 and above with a valid MyKad and driving licence to purchase RON95 petrol at RM1.99 per litre, compared with RM2.60 per litre without the subsidy.
The scheme has been extended to more than 17,900 registered fishermen, over 4,300 private boat owners in Sabah, and 1,400 in Sarawak, reaching over 16 million Malaysians in total.
The minister concluded: “The MADANI Government remains committed to ensuring that targeted subsidy programmes are implemented smoothly, transparently, and provide direct benefits to the people.” - November 3, 2025
