Key facts
- Malaysian Prime Minister Anwar Ibrahim announced measures to tackle rising living costs and support businesses.
- Subsidized petrol and diesel purchase quotas are being restored to higher levels.
- Increased funding will be allocated to schools, small traders, digital health systems, and micro-financing.
- A government AI program will be made accessible to young Malaysians.
- The measures are seen as a response to recent election setbacks and declining voter support.
Malaysian Prime Minister Anwar Ibrahim has introduced a series of measures aimed at curbing the rising cost of living and providing support to businesses, signaling a shift towards a more voter-centric fiscal strategy following recent electoral defeats. These initiatives come as Malaysia's economy shows strong growth, which the government aims to translate into tangible benefits for households and smaller enterprises.
Key measures include the restoration of higher quotas for subsidized petrol and diesel purchases. The quota for the popular RON95 fuel will be increased to 300 liters per month, up from a reduced 200 liters, while the diesel quota for certain users will rise to 400 liters monthly. Anwar stated that the nation's economic growth should directly benefit its citizens.
Further support for businesses and education includes increased funding for school maintenance, enhancements to digital health systems, and expanded micro-financing facilities for small businesses. The revenue threshold for companies to be exempted from implementing e-invoicing will be raised to RM3 million annually. Additionally, funds seized from anti-corruption legal proceedings will be redirected towards educational and healthcare programs.
Anwar also announced the opening of a government artificial intelligence program to Malaysians aged between 18 and 30, offering free access to applications like Google's Gemini Enterprise and Alibaba Cloud's WonderClip and MuleRun. Analysts interpret these steps as a strategic response to declining support for Anwar's coalition, which has suffered defeats in recent regional elections, and to address criticisms regarding reform delivery and the handling of corruption cases.