Malaysia’s Prime Minister Anwar Ibrahim has rolled out a series of new measures to help Malaysians cope with rising living costs, just days before a major protest is set to take place in Kuala Lumpur calling for his resignation.
One of the biggest announcements? A RM100 (~SGD 30.23) cash handout for every Malaysian adult aged 18 and above. This one-time aid will be disbursed from August 31 and is expected to benefit millions across the country. The government is also increasing its overall budget for cash aid in 2025 to RM15 billion, up from the initially planned RM13 billion.
Acknowledging growing public frustration, Anwar said,
“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.”
Meanwhile, Singaporean seniors aged 60 and above can now claim $800 worth of SG60 vouchers, while adults aged 21 to 59 can start claiming $600 worth of vouchers from July 22.
Unlike CDC vouchers, which are given to households, these SG60 vouchers are issued to individual Singaporeans as a one-off benefit to celebrate the country’s 60th year of independence. The scheme is part of the broader SG60 Package, first announced by Prime Minister Lawrence Wong during Budget 2025.
Cheaper Petrol Coming Soon, But Only for Citizens
In another headline move, Anwar announced that the long-anticipated changes to Malaysia’s fuel subsidy scheme will be revealed before the end of September.
Once implemented, RON95 petrol prices will drop to RM1.99 (~SGD 0.60) per litre, slightly lower than the current RM2.05 (~SGD 0.62). However, this subsidised rate will apply only to Malaysian citizens. Foreigners will have to pay full market prices at the pump.
While the government had previously proposed removing subsidies for the top 15% income group, it’s still unclear whether that remains part of the final plan.
Mixed Reactions and Worries Over Inflation
The new cash aid and petrol price revisions come amid growing concerns over the rising costs of basic goods, especially food. Although Malaysia’s overall inflation rate has slowed, food prices continue to rise, with the latest figures showing a 2.1% increase year-on-year.
Critics have also raised concerns about other government moves this year, such as higher electricity tariffs and new taxes on luxury items and some imported fruits, which they fear might eventually hit ordinary consumers.
Still, some economists believe the cash handouts could help boost local spending and ease short-term burdens. But they also warned that such measures may increase pressure on the government’s finances, potentially affecting its plan to bring the budget deficit down to 3% by 2028.
More Help on the Way
Anwar also promised that more targeted aid for low-income families will be unveiled soon. In addition, he announced new funding for a government programme focused on improving access to affordable daily necessities.
And on a lighter note, Malaysians can look forward to an extra public holiday on September 15, in celebration of Malaysia Day. That means a possible long weekend from September 13 to 16 for many.
