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...
Malaysia's 2025 subsidy expenditure shrank by RM15.67 billion, or 40.1%, compared to RM39.10 billion in 2024, according to the Auditor General's Report (LKAN) 2/2026. This reduction was influenced by both falling crude oil prices and the introduction of targeted diesel and petrol subsidy reforms. The most significant drop was in petroleum product subsidies, which plummeted from RM34.91 billion in 2024 to RM19.11 billion in 2025.
The Auditor General attributes the decrease to a sharp decline in global crude oil prices, which fell to US69.05 per barrel in 2025 from US80.81 per barrel in 2024. Additionally, the government achieved a 46.5% year-on-year reduction in petrol subsidies, and a 48.2% decrease in diesel subsidies. Other subsidies, such as those for liquefied petroleum gas (LPG) and welfare grants, also saw substantial decreases or increases.
Notably, welfare grant and assistance expenditures surged by 380.8% to RM20.36 billion in 2025 from RM4.24 billion in 2024, attributed to the disbursement of several schemes including Sumbangan Asas Rahmah (SARA), Sumbangan Tunai Rahmah (STR), and Madani Subsidy Assistance Programme (BUDI Madani).
Written by urgent.news from Malay Mail's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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