Malaysian Prime Minister Anwar Ibrahim has unveiled a package of measures aimed at alleviating the cost of living for Malaysians. The initiative includes a 100 ringgit ($24) cash handout for all adult citizens, benefiting approximately 22 million people. This assistance will be redeemable at over 4,000 stores nationwide from August 31 to December 31.
In addition to the cash handouts, the government will reduce the price of subsidized petrol from 2.05 ringgit per liter to 1.99 ringgit per liter for citizens. Anwar also announced that planned hikes in toll rates on 10 highways will be frozen, providing further relief to Malaysian households.
An extra public holiday will be scheduled for September 15 to coincide with Malaysia Day, marking the country’s federation. According to Anwar, these measures are designed to support low- and middle-income households struggling with rising living costs.
Economists have welcomed the move, noting its potential to boost household consumption and support economic growth. Yeah Kim Leng, an economics professor at Sunway University in Kuala Lumpur, said, “Malaysian households, especially those in the low and middle-income groups, will welcome the cost-of-living relief provided by the measures.”
Lavanya Venkateswaran, senior economist at Oversea-Chinese Banking Corp, added that the measures align with government efforts to support growth, forecast to slow from 4.4% in the first half of 2025 to 3.5% in the second half. “The fiscal package announced today, taken together with the central banks’ 25bps rate cut earlier in July, suggests that the authorities are stepping up counter-cyclical policies,” Venkateswaran said.
The announcement comes ahead of a planned rally in Kuala Lumpur, where protesters are demanding Anwar’s resignation over rising living costs and alleged failure to implement promised reforms. Police expect up to 15,000 people to attend the protest, organized by the opposition Perikatan Nasional coalition.
Anwar’s measures aim to address the concerns of Malaysian households and support economic growth, amid a challenging global economic landscape. By providing relief to low- and middle-income households, the government hopes to stimulate household consumption and drive economic activity.