Malaysia's PM Anwar Unveils $500M Aid, Fuel Cuts to Address Living Costs

Malaysian Prime Minister Anwar Ibrahim has announced a comprehensive package of relief measures to ease the rising cost of living amid inflation concerns and economic uncertainties. Key initiatives include a one-off RM100 (approximately $23) cash handout to all Malaysians aged 18 and above, benefiting around 22 million people at a total cost of RM2 billion, and a reduction in RON95 petrol prices to RM1.99 per liter. Additional measures include the doubling of funds for the Jualan Rahmah MADANI program, cancellation of toll rate hikes on 10 highways, and the declaration of an additional public holiday on September 15 to promote national unity. These steps come as Malaysia projects strong economic growth with a 4.5% GDP increase in Q2 2025 and a 5% appreciation of the ringgit against the US dollar. However, the relief efforts face public pressure amid protests demanding Anwar's resignation over rising prices and unfulfilled reforms, with economists warning about the long-term fiscal impact of subsidies. The package also aims to mitigate challenges from a recent sales and service tax hike and external trade uncertainties, including threats of tariffs from US President Donald Trump.