Targeted subsidy reforms help cut Malaysia’s 2025 bill by RM15.67b, federal audit shows
KUALA LUMPUR, Oct 5 — The government has managed to reduce its subsidy expenditure by 40.1 per cent to RM23.43 bil...
The Malaysian government has successfully reduced its subsidy expenditure by 40.1% to RM23.43 billion in 2025, down from RM39.10 billion in 2024, according to the Auditor General's Report (LKAN) 2/2026. The decrease was primarily driven by a sharp decline in petroleum product subsidies, dropping from RM34.91 billion in 2024 to RM19.11 billion in 2025.
The report attributes the reduction in subsidy expenditure to the fall in global crude oil prices, from US80.81 per barrel in 2024 to US69.05 per barrel in 2025, as well as targeted reforms aimed at trimming diesel and petrol subsidies.
Petrol subsidies experienced the most significant reduction, falling 46.5% year-on-year (y-o-y) to RM10.51 billion from RM19.66 billion in 2024. Diesel subsidies also saw a sharp decline of 48.2% y-o-y to RM5.98 billion from RM11.54 billion previously. LPG subsidies decreased by 29.1% y-o-y to RM2.63 billion from RM3.71 billion in the preceding year.
Conversely, welfare grants and assistance programs for communities, individuals, and families saw a substantial increase of 380.8% to RM20.36 billion in 2025, up from RM4.24 billion in 2024. The rise was attributed to the disbursement of various assistance programs, including Sumbangan Asas Rahmah (SARA), Sumbangan Tunai Rahmah (STR), and the Madani Subsidy Assistance Programme (BUDI Madani), as well as operational costs for such initiatives.
Written by urgent.news from Malay Mail's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
