Malaysia

Madani government – Focus on difficult, but essential economic reforms

Among the greatest challenges was the unsustainable blanket subsidy bill, which hit about RM80 billion annually.

Updated 8 months ago · Published on 14 Feb 2026 9:05AM

Madani government – Focus on difficult, but essential economic reforms
Targeted RON95 subsidies under the Budi95 initiative are expected to generate savings of at least RM2.5 billion in 2026. - Filepix, February 14, 2026

AFTER years of political turbulence, the formation of the Unity Government provided the necessary stability to focus on difficult but essential economic reforms.

Among the greatest challenges was the unsustainable blanket subsidy bill, which hit about RM80 billion annually.

"This required a fundamental shift from broad-based populist subsidies to targeted data-driven interventions to protect the vulnerable while enforcing fiscal discipline.

"The Madani government was left with no choice but to implement unpopular but necessary structural reforms," said Aidi Amin, the managing director of Neutrino Media, an emerging brand consultancy here.

He pointed out that one of the most successful initiatives is the Budi Madani RON95 (Budi95) targeted fuel subsidy mechanism, which has benefitted some 14.6 million Malaysians.

"Targeted RON95 subsidies under the Budi95 initiative are expected to generate savings of at least RM2.5 billion in 2026.

"Another successful initiative implemented under the Madani government is the Sumbangan Asas Rahmah (SARA), which benefits over 22 million Malaysians," he said.

Aidi pointed out that one of the greatest highlights was the emerging strength of the Ringgit as one of Asia's best-performing currencies against the USD.

This, he said, has greatly restored investor confidence, and Malaysia's recent success as the ASEAN chair has put the country once again in the global spotlight.

"Under the leadership of Prime Minister Datuk Seri Anwar Ibrahim, the Madani government has broken decades of inertia to implement necessary, but unpopular reforms, securing the nation's long-term fiscal health.

"It also remains a priority for the Madani government to ensure every Ringgit saved is immediately redirected to the vulnerable through expanded cash transfers and essential aid," he said.

He added that the Madani government has demonstrated that fiscal discipline and social justice are not opposing forces, but complementary pillars of a modern, resilient Malaysia.  – February 14, 2026

Related News

Malaysia / 1d

Could a Black Swan fuel crisis be approaching?

Opinion / 6d

Budget 2027: Making 2027 the year of Malaysian MSMEs through purpose-driven governance

Malaysia / 1w

Budget 2027: SARA, STR aid raised to RM16bil for 2027

Malaysia / 2w

Vandalism at mosque: Blaming the MADANI govt ‘unfounded and ridiculous’ (video)

Malaysia / 1mth

Anutin’s first year: Restoring Thailand’s political status quo

Malaysia / 1mth

PM Anwar: Madani administration doing its best to meet needs of all races

Spotlight

Malaysia

Papagomo acquitted for second time in sedition case over government, Israel claims

Malaysia

ECRL fares start at RM60, with 50% discounts for children, seniors and OKU

Malaysia

DKU seeks court action against Ismail, 16 others over Negeri Sembilan royal dispute

By Alfian Z.M. Tahir

Malaysia

Kampung Manis: Dreams of 227 families to own replacement homes draw closer

Malaysia

Fadhlina takes legal action over video of 2023 Parliament speech

By Alfian Z.M. Tahir

Malaysia

Civil servants urged to turn Selangor Sultan’s anti-graft message into action

Malaysia

Animal welfare group urges probe into alleged sexual abuse of cat in viral video

Malaysia

Macron appeals for calm after France riots: 2,400 arrested, nearly 1,000 officers injured

Malaysia

Malaysia renews offer to help Indonesia fight fires

You may be interested

Malaysia

Housewife loses RM472k in phone scam after fraudsters threaten arrest

Malaysia

Schools to reopen in 3 states as usual, outdoor activities suspended

Malaysia

Malaysia offers aircraft, helicopters and 50 personnel to fight Indonesian fires

Malaysia

Woman remanded for four days over discovery of headless baby’s body in Terengganu

Malaysia

DKU seeks court action against Ismail, 16 others over Negeri Sembilan royal dispute

By Alfian Z.M. Tahir

Malaysia

Anwar calls for stronger efforts to keep Malaysia’s cultural heritage alive

Malaysia

MCMC warns cyberbullies, AI disinformation offenders as online safety comes under scrutiny

Malaysia

Thousands surrender medical policies as Malaysia prepares affordable MediAsas cover