Malaysian PM Announces Increase in Subsidised Fuel Quota to Ease Cost of Living
The Malaysian government is increasing the quota for subsidised fuel to address the rising cost of living for its citizens. Additionally, Malaysia is boosting funding for small traders and schools to support the business sector in the neighbouring country.
Malaysian Prime Minister Anwar Ibrahim announced that the programme is scheduled to take effect from 1 September 2026. This policy comes amidst pressure on Anwar to tackle the rising cost of living in Malaysia.
According to reports, Malaysia’s economy has recorded higher growth compared to other countries in the region. Malaysia’s Gross Domestic Product (GDP) grew by 6 per cent in the second quarter of 2026, surpassing official government projections.
Reuters reports that the Malaysian government will restore the RON 95 transport fuel purchase quota for citizens to 300 litres per month. Previously, this quota had been reduced to 200 litres per month at the beginning of the year due to the surge in global crude oil prices caused by the US-Israel conflict with Iran. The diesel purchase quota for certain user categories will also be increased to 400 litres per month.
Furthermore, the Malaysian government will launch an artificial intelligence (AI) programme for citizens aged 18-30. The programme will provide free access to several key applications, including Google’s Gemini Enterprise, as well as China’s Alibaba Cloud-based Wonderclip and MuleRun.
Anwar also announced additional budgets for school maintenance, the improvement of digital health systems, and micro-financing facilities for small business operators. This includes raising the income threshold for companies exempt from the obligation to implement e-invoicing to 3 million ringgit per year.
Additionally, all funds seized or confiscated through legal processes related to anti-corruption efforts will be reallocated to fund government programmes, particularly in the fields of education and health.
It is noted that support for the coalition led by Anwar has faced a decline. Critics have cited failures to fulfil reform promises and the handling of several major corruption cases deemed problematic.
The coalition has also experienced losses in three consecutive local elections. These state-level elections are viewed as indicators of voter sentiment ahead of the general election, which is to be held no later than early 2028.
Anwar stated that he could hold the general election earlier if divisions within his government continue to widen.