SHAH ALAM — Finance Minister Datuk Seri Anwar Ibrahim has announced that the Malaysian government plans to introduce targeted subsidies for RON95 petrol starting in mid-2025.
Anwar who is also the Prime Minister said that the savings from these targeted subsidies would be channelled toward the welfare of the broader public.
He emphasised that the government would continue to provide subsidies for 85 per cent of the population, with an estimated budget of RM12 billion allocated to ensure that the majority of Malaysians are not adversely affected by the changes.
"The low price of RON95 has led the government to shoulder a subsidy burden of RM20 billion for the year 2023.
"However, the government remains committed to maintaining subsidies for the majority of the population, similar to the targeted electricity subsidy approach, where 85 per cent of citizens are unaffected,” he said during the tabling of the Malaysia Madani Budget 2025 in the Dewan Rakyat on Friday.
He added that currently, the price of RON95 in Malaysia is RM2.05 per litre, which is significantly lower compared to neighbouring countries like Thailand (RM5.85), Indonesia (RM3.38), Singapore (RM9.02), and even Saudi Arabia (RM2.66).
Additionally, Anwar pointed out that foreign nationals and the top 15 per cent of the wealthiest consumers benefit from about 40 per cent of the RON95 petrol subsidy, which amounts to approximately RM8 billion.
He suggested that these funds could be better utilised to enhance public services such as education, healthcare, and public transportation for the benefit of all Malaysians.