Govt’s subsidy spending down 40% to RM23bil in 2025
Fuel subsidies were nearly halved last year while welfare grants and assistance increased by 380%.
In 2025, the government's subsidy spending decreased by 40.1% to RM23.43 billion, according to the auditor-general's report. This reduction was partly attributed to a significant drop in global crude oil prices and targeted subsidies for diesel and petrol. The RM15.67 billion decrease was primarily due to a sharp decline in petroleum product subsidies, which dropped from RM34.91 billion in 2024 to RM19.11 billion in 2025.
Global crude oil prices fell from US$80.81 per barrel in 2024 to US$69.05 per barrel in 2025, further contributing to the reduction in subsidies. Petrol subsidies decreased by 46.5% to RM10.51 billion, while diesel subsidies fell by 48.2% to RM5.98 billion. Additionally, LPG subsidies saw a 29.1% reduction to RM2.63 billion. In contrast, welfare grants and assistance for communities, individuals, and families saw a substantial 380.8% increase to RM20.36 billion in 2025 from RM4.24 billion in 2024, driven by the disbursement of various assistance programs and operating costs.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Govt’s subsidy spending down 40% to RM23bil in 2025 freemalaysiatoday.com
