Malaysia PM Anwar unveils RM15B cash aid, fuel subsidy cuts amid protest plans

Malaysian Prime Minister Anwar Ibrahim announced a series of measures to address rising living costs, including a one-off RM100 cash handout for all adult citizens and a reduction in RON95 petrol prices from RM2.05 to RM1.99 per litre for Malaysians, while foreign nationals will pay market rates. The cash aid, distributed from August 31 and valid until the end of the year, is part of a larger RM15 billion cash assistance package planned for 2025, an increase from the previous RM13 billion allocation. These initiatives come amid growing public discontent over expanded sales and services tax hikes and other reforms, sparking planned protests in Kuala Lumpur with expected attendance of up to 15,000 people demanding Anwar's resignation. Fitch Ratings noted that while the RM2.3 billion cost of the new measures is affordable within Malaysia's 2025 budget, further delays in subsidy rationalisation could undermine fiscal consolidation efforts aimed at reducing the deficit to 3% of GDP by 2028. Critics argue that the RM100 handout is insufficient given inflation and rising food and fuel prices, and express concern that subsidy reforms may unfairly impact middle-class citizens. Despite these criticisms, Anwar's government has pledged additional poverty-relief initiatives and increased funding for affordable goods programs to ease economic pressures.