During the tabling for Budget 2026 in the Parliament today (10 October), Prime Minister Datuk Seri Anwar Ibrahim revealed that the targeting of subsidies is saving the nation around RM15.5 billion per year.
Moreover, the targeted RON95 petrol subsidy has the potential to save at least RM2.5 billion, with qualified Malaysians being able to enjoy lower fuel prices at RM1.99 per litre.

Malaysia saves RM15.5 Billion annually via targeted subsidies
In the meantime, PMX also said that floating the price of chicken saves RM1 billion, while chicken prices remain controlled.
“Floating the price of eggs saves RM1 billion.”
“Targeted subsidies and the restructuring of electricity tariffs save an average of RM6 billion. In fact, 85% of users are not affected by tariff increases, and some even enjoy lower bills.”
Additionally, PMX added that the targeted diesel subsidies save RM5 billion. The public transport sector, fishermen, and specific logistics operators continue to receive subsidised diesel. RM200 per month is provided to individual vehicle owners, farmers, and smallholders.
Stay tuned for more updates.
Also read: Budget 2026: Malaysians Can Claim Income Tax Relief of Up to RM1,000 for Domestic Tourism

