DURING the Third Meeting of the Fourth Session of the Fifteenth Parliament on Tuesday, Dr Hajjah Halimah Ali (Kapar) asked the Finance Minister to specify concrete measures taken by the government to ensure that the rationalisation of subsidies on petrol, electricity, and essential goods does not overburden B40 and M40 households, including projected price impacts before and after implementation.
Deputy Finance Minister Lim Hui Ying told the Dewan Rakyat the MADANI Government has allocated over RM208 billion from 2023 to 2025 for subsidies, assistance, and incentives to stabilise prices and ease the financial burden on low- and middle-income citizens.
She noted, however, that blanket subsidies were often exploited by ineligible recipients, including foreign nationals, and were vulnerable to smuggling activities.
“In view of this, the Government has taken bold steps since 2023 by implementing targeted subsidies to ensure that assistance reaches those who genuinely qualify and to reduce leakage caused by smuggling. The savings realised are redirected towards programmes that directly benefit the rakyat,” she said.
Specific measures include targeted electricity subsidies, with 85 per cent of households continuing to benefit; price liberalisation for chicken and eggs, which has not disrupted supply or market stability; and targeted diesel subsidies.
Under the diesel programme, 122,762 companies operating 359,004 vehicles have access to subsidised diesel at RM2.15 per litre, while 320,000 private diesel vehicle owners, farmers, breeders, and smallholders receive monthly cash aid of RM200.
Subsidised RON95 petrol is available to Malaysian citizens aged 16 and above at RM1.99 per litre. The BUDI95 scheme has been extended to more than 17,000 registered fishermen, over 6,000 private boat owners in Sabah and Sarawak, and to e-hailing and airport taxi drivers.
The Minister emphasised that the targeted subsidy programme has helped maintain inflation at a controlled rate of 1.8 per cent in 2024, with projections ranging from 1.0 to 2.0 per cent in 2025 and between 1.3 and 2.0 per cent in 2026.
Savings from the targeted subsidies are being channelled into programmes directly benefiting citizens, including the Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) schemes, with allocations increased to RM15 billion and an additional RM2 billion for one-off SARA appreciation payments.
Assistance under the Social Welfare Department has risen to RM2.9 billion, while cost-of-living relief initiatives receive RM1 billion, including RM600 million for the Rahmah MADANI Sales Programme. Funding for the Back-to-School Assistance (BAP) programme is RM791 million, the monthly My50 pass in the Klang Valley is supported with RM216 million, and RM200 million has been allocated for 30-Day and Concession Cards under BAS.MY, now extended to other states including Sabah and Sarawak, Lim explained.
The deputy minister concluded that: “The savings achieved through targeted subsidies enable the Government to allocate more funds towards welfare agendas, cost-of-living relief, and investments in quality infrastructure for the rakyat.” - November 18, 2025
