Malaysia PM Anwar unveils cash handout, fuel subsidy revamp as protests loom over rising living costs
The aid is expected to benefit some 22 million people and cost the government about RM2 billion
[KUALA LUMPUR] With his administration under fire and street protests looming, Malaysia’s Prime Minister Anwar Ibrahim announced a slew of initiatives, including a one-off cash handout and lower fuel prices, in a high-stakes effort to defuse growing public anger over rising costs of living.
In a special televised address on Wednesday (Jul 23), Anwar announced a one-off RM100 (S$30) cash payment for all adult Malaysians, calling it “an unprecedented gesture of appreciation and support amid mounting economic pressure”.
The aid, to be distributed from Aug 31 – Malaysia’s National Day – is expected to benefit some 22 million people and cost the government about RM2 billion.
“This is the first time in history that cash aid is distributed to all adult citizens,” he said, adding that total allocations for cash assistance programmes, including Sumbangan Tunai Rahmah, will increase to RM15 billion next year – up from RM13 billion previously.
The one-off handout, which will be distributed through MyKad, must be spent between Aug 31 and Dec 31. It is valid for purchasing essential goods at more than 4,100 participating supermarkets and grocery stores nationwide.
The move comes as Anwar’s government grapples with public backlash over the expansion of the sales and services tax, as well as other cost-pushing reforms.
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The broadened tax net now includes a wider range of goods and services, including imported fruits and selected luxury items, prompting discontent across segments of society.
Adding further pressure, opposition leaders and civil society groups are preparing for a large-scale protest on Saturday at Dataran Merdeka. More than 300 people took part in a precursor rally earlier this month, calling for Anwar’s resignation over economic grievances.
According to earlier reports, opposition party Parti Islam Se-Malaysia (PAS) Youth deputy chief Hanif Jamaluddin described the earlier protest as a “warm-up” for what he said would be a much larger show of dissatisfaction.
Among those expected to attend the Saturday’s protest are prominent political figures, including former prime minister Dr Mahathir Mohamad, Bersatu president Muhyiddin Yassin and PAS president Abdul Hadi Awang.
RON95 price reduced to RM1.99
Meanwhile, Anwar announced that the retail price of RON95 petrol will be lowered to RM1.99 per litre for eligible motorists – a reduction that is part of the government’s plan to retarget petrol subsidies.
Under the new scheme, eligible Malaysians – including gig workers and licensed motorcycle riders as young as 16 – will be entitled to a subsidised rate of RM1.99 per litre. Foreigners and high-income earners will be required to pay the market rate, which Anwar estimated to be around RM2.50 per litre.
Currently, RON95 retails at RM2.05 per litre under a blanket subsidy model, while the floating market rate for RON97 stands at RM3.21.
“The government remains committed to its plan to restructure RON95 petrol subsidies, while ensuring the public will not be affected by this,” Anwar said.
The prime minister did not elaborate on the plan’s specifics or implementation timeline, but noted that full implementation details will be announced by the end of September.
He also acknowledged that the current subsidy system is fiscally unsustainable, saying fuel subsidies alone cost the government nearly RM20 billion annually in both 2023 and 2024.
“This targeted approach is aligned with our efforts to optimise national resources for the benefit of the people and reduce subsidy wastage,” he said.
Toll freeze and public holiday
To further sweeten the deal, Anwar additionally announced the deferment of scheduled toll hikes on 10 highways this year, including the Senai-Desaru Expressway, East Coast Expressway 2 and South Klang Valley Expressway. The freeze will cost the government RM500 million.
He also declared an additional public holiday on Sep 15 in conjunction with Malaysia Day celebrations.
“I acknowledge the complaints and accept that the cost of living remains a challenge that must be addressed, even though we have announced various measures thus far,” Anwar said, adding that an initiative to aid those in poverty will be launched on Thursday.
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