Prime Minister Anwar Ibrahim today announced that all citizens aged 18 and above will receive RM100 starting 31 August 2025, via MyKad. This grant must be used before 31 December 2025, and must be used to purchase basic goods at 4,100 shops.
An appreciation for Malaysians
For your information, this assistance will be provided on an individual basis, allowing households to receive extra money to spend on basic goods. The Prime Minister aims that this new initiative will benefit more than 22 million Malaysians.
In addition, the Prime Minister also announced September 15, 2025 as an additional public holiday, in an effort to further promote domestic tourism by local people.
"I acknowledge the complaints and accept that the cost of living remains a challenge that must be addressed, even though we have announced various measures thus far," Anwar said, adding that more initiatives to aid those in poverty will be launched on Thursday.
PMX also announced other aids and subsidies
Besides that, Anwar's administration has carried out a number of measures to boost revenue and productivity this year, including a minimum wage hike, toll hike freeze, increased electricity tariffs on heavy power users and an expanded sales and services tax.
Anwar has said the moves were mainly targeted at large businesses and the wealthy, but critics have voiced fears that higher costs would eventually be passed down to consumers, including lower and middle-income earners.
Anwar said the government will also announce details of a long-awaited plan to adjust blanket subsidies on the widely used RON95 transport fuel before the end of September.
Once the subsidy changes are implemented, Malaysians will see fuel prices at the pump drop to 1.99 ringgit per litre, compared to the current price of 2.05 ringgit, Anwar said.
What experts think
Foreign nationals however will have to pay unsubsidised market prices for the fuel, he said. Anwar did not provide details on how the measure will be enforced.
Analysts say changes to the fuel subsidy rationalisation scheme - originally set for mid-2025 and aimed at also removing subsidies for the wealthy - could affect Malaysia's fiscal consolidation plans.
Kenanga Investment Bank economist Muhammad Saifuddin Sapuan said the cash handout and subsidy measures were necessary to boost domestic demand, amid external headwinds arising from ongoing global uncertainty.
"Nevertheless, this comes at a cost, especially on how the government will finance it, and likely put pressure on its fiscal target," he said.
Kathleen Chen, of Fitch Ratings’ Sovereigns team, said further delays or insufficient progress on subsidy rationalisation could jeopardise the government’s goal to reduce its deficit to 3% by 2028.
Fitch expects Malaysia’s general government debt to remain high, at around 76.5% of GDP in 2025, with only a gradual decline in the medium term, she said.
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