Business : PM Anwar Announces Six Immediate Measures To Address People's Cost Of Living

Malaysian Prime Minister Anwar Ibrahim presented a package of cost-of-living measures on Sunday aimed at supporting businesses and citizens, set to commence on September 1. The initiatives include reinstating higher quotas for subsidized petrol and diesel purchases, along with additional funding for schools and small traders. The Prime Minister addressed these measures in a televised speech, emphasizing the need to return economic growth to the people.

Despite Malaysia's GDP growing by 6% in the second quarter, surpassing projections, Anwar faced mounting pressure to address rising living costs.

The government will restore a quota for Malaysian citizens to buy the popular RON95 transport fuel to 300 liters per month, up from 200 liters previously. Similarly, the quota for diesel purchases for certain categories of users will be raised to 400 liters per month. In addition, Anwar announced the creation of an intelligence program targeting Malaysians aged 18-30, offering free access to key applications like Google’s Gemini Enterprise and Wonderclip, as well as MuleRun by Alibaba Cloud.

Increased funding is also being allocated for maintaining schools, enhancing digital health systems, and providing micro-financing for small businesses. The government will raise the revenue threshold exempting companies from e-invoicing to 3 million ringgit annually, with any seized or forfeited funds from anti-corruption proceedings directed towards education and healthcare.

Anwar’s coalition has been experiencing a decline in support due to perceived failures in implementing promised reforms and mishandling high-profile corruption cases. The coalition has lost three consecutive regional elections in recent months, serving as a barometer for voter sentiment ahead of a general election expected to be held by early 2028. Anwar has indicated the possibility of calling a snap election if divisions within his administration persist.