Anwar Unveils Nationwide Cash Aid and Fuel Subsidy Reform Amid Economic Discontent
Facing mounting public pressure and looming protests, Malaysian Prime Minister Anwar Ibrahim has announced a series of financial relief measures, including a one-time cash handout and fuel subsidy revisions, aimed at easing growing discontent over rising living costs.
In a special televised address on Wednesday (July 23), Anwar revealed that all adult Malaysians will receive a one-off RM100 (S$30) cash payment—a move he described as a “historic expression of appreciation and support” during a time of increasing economic strain. Scheduled to be disbursed before National Day on August 31, the aid package is expected to reach approximately 22 million citizens, costing the government RM2 billion.
“This marks the first time in our nation’s history that every adult citizen will receive direct cash assistance,” Anwar said, noting that the total allocation for cash aid programs, including Sumbangan Tunai Rahmah, will increase to RM15 billion in 2025, up from RM13 billion this year.
The handout will be distributed through MyKad and must be used between August 31 and December 31 to purchase essential items at over 4,100 participating supermarkets and stores nationwide.
These announcements come as Anwar’s administration faces criticism over its recent expansion of the sales and services tax, which now includes a broader range of goods and services such as imported fruits and certain luxury products. The reforms have sparked widespread discontent, with opposition leaders and civil society groups planning a mass protest on Saturday at Dataran Merdeka. Earlier this month, over 300 demonstrators gathered in a smaller rally, demanding Anwar’s resignation over economic issues.
PAS Youth deputy chief Hanif Jamaluddin described that earlier protest as merely a “warm-up” for a larger demonstration. Among those expected to join Saturday’s protest are political heavyweights, including former Prime Minister Dr Mahathir Mohamad, Bersatu President Muhyiddin Yassin, and PAS President Abdul Hadi Awang.
RON95 Subsidy Revamp: Price Cut for Eligible Malaysians
Anwar also announced a reduction in the retail price of RON95 petrol to RM1.99 per litre for qualifying motorists as part of a broader fuel subsidy reform. While full details and timelines were not disclosed, he emphasized that the new targeted subsidy scheme would apply to Malaysians including gig workers and licensed motorcycle riders aged 16 and above. Higher-income earners and foreigners will pay market rates, currently estimated at RM2.50 per litre.
Currently, RON95 sells at RM2.05 per litre under a blanket subsidy, while RON97 is priced at RM3.21.
Reiterating the need for fiscal sustainability, Anwar said the government spent nearly RM20 billion annually on fuel subsidies in 2023 and 2024. “This targeted approach will ensure better resource allocation and reduce subsidy wastage,” he added. Full implementation details are expected by the end of September.
Toll Hike Freeze and Extra Holiday Announced
To further ease public dissatisfaction, Anwar announced a freeze on scheduled toll increases across 10 highways this year, including the Senai-Desaru Expressway, East Coast Expressway 2, and South Klang Valley Expressway—a move that will cost the government RM500 million. Additionally, a public holiday has been declared on September 15 in conjunction with Malaysia Day.
“I hear your concerns and recognize the ongoing burden of living costs,” Anwar said, promising new poverty-alleviation initiatives set to be unveiled Thursday.
