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Malaysia
This Week in AsiaEconomics

Malaysia unveils 100 ringgit handout, fuel subsidy in bid to calm cost-of-living anger

All Malaysians aged 18 and over will receive a one-off payment next month, Prime Minister Anwar Ibrahim announced on Wednesday

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A man watches televisions at a shop in in Bentong, Pahang state, as Malaysian Prime Minister Anwar Ibrahim announces the cash handout during a live telecast on Wednesday. Photo: AFP
Joseph SipalanandHadi Azmi
Prime Minister Anwar Ibrahim announced a sweeping relief package on Wednesday aimed at easing the financial strain on millions of Malaysians – including a 100 ringgit (US$24) payment to everyone aged 18 and over – as his government confronts mounting anger over surging living costs and new taxes.

In a special address broadcast on national television and social media, Anwar pledged the one-off payment to coincide with National Day on August 31. The cash handout is expected to reach around 22 million people and cost the government around 2 billion ringgit (US$472 million).

In a further move to soothe public frustration, he said that from September, about 18 million motorists would be eligible for subsidised RON95 petrol at 1.99 ringgit (47 US cents) per litre, down from the current price of 2.05 ringgit. It was not immediately clear how the reduced price would affect the government’s long-standing commitment to overhaul Malaysia’s costly fuel subsidies.
A money changer counts Malaysian ringgit banknotes in Kuala Lumpur. Malaysia’s new cash handout is expected to reach around 22 million people. Photo: AFP
A money changer counts Malaysian ringgit banknotes in Kuala Lumpur. Malaysia’s new cash handout is expected to reach around 22 million people. Photo: AFP

“The government remains committed to its plan to restructure RON95 petrol subsidies,” Anwar said on Wednesday. “The government gives its guarantee that the public will not be affected.”

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The announcements come as Anwar’s administration reaches the midpoint of its term, with public support wavering in the face of sweeping subsidy cuts and the introduction of new taxes on imported goods. Many Malaysians have reported growing financial hardship, intensifying pressure on the government to act.

By unveiling direct financial assistance and targeted fuel relief, the prime minister is seeking to shore up confidence in his leadership and deliver immediate support to millions grappling with the rising cost of living.

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Anwar’s popularity has taken a hit since May following a string of political missteps, including a contentious party reshuffle that saw his daughter elevated to the position of second-in-command in his People’s Justice Party, fuelling accusations of nepotism.

The discontent grew earlier this month with the expansion of the sales and services tax, which imposed a new 5 per cent levy on nearly 5,000 items. While government officials defended the move by classifying the goods as “luxuries”, critics decried it as another blow to an already hard-pressed middle class.

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