Malaysia may spend nearly RM40 billion on fuel subsidies in 2026, PM Anwar says

[KUALA LUMPUR] Malaysia may spend up to RM40 billion (S$12.7 billion) on fuel subsidies this year if energy prices remain elevated, more than double its initial Budget allocation, Prime Minister Anwar Ibrahim said.

Malaysia had set aside about RM15 billion for fuel subsidies in its Budget for 2026.

In a written parliamentary reply dated Tuesday (Jun 30), Anwar said the government had spent about RM800 million in each of the first two months of the year on subsidies for diesel and the RON95 transport fuel, before the figure jumped to about RM5 billion in March and April after the outbreak of the war in Iran.

“The government’s priority is to ensure that the people continue to be protected if this crisis continues, especially those most affected by the cost of living pressures and rising global prices,” Anwar, who is also finance minister, said.

Anwar said the government will continue monitoring the fiscal position and subsidy capacity to ensure financial assistance can be rendered sustainably. REUTERS