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BUDGET 2026 has been crafted in line with current economic realities, not abstract theory, Prime Minister Datuk Seri Anwar Ibrahim said today, stressing that prudent fiscal management must take precedence while protecting the well-being of ordinary Malaysians.
Anwar, who is also the Finance Minister, said the budget’s foundation could not be compared with the economic boom of the 1990s when Malaysia saw growth rates of 10 to 11 per cent with low fiscal deficits.
“The budget framework must reflect the real economic situation we face. Sometimes, if we only take the views of academicians or theoreticians, they give us general frameworks, but we must consider debt levels, the deficit and revenue before we can achieve balance,” he said at the Finance Ministry’s monthly assembly.
“It’s different from the 1990s. Naturally, the approach must also differ. We inherited swelling debts and a high deficit, so all these factors must be carefully assessed before designing a suitable budget framework that meets current needs.”
Addressing the government’s commitment to targeted subsidies, Anwar revealed he pays the full price of RM2.60 per litre for RON95 petrol — despite being eligible for the RM1.99 per litre subsidy under the BUDI95 scheme.
“I pay RM2.60 per litre for RON95, even though I qualify for the RM1.99 subsidy,” he said, underlining the need for fairness in subsidy distribution to ensure only those truly in need benefit from government support.
He noted that the dual pricing — RM1.99 for locals and RM2.60 for foreigners — reflects the administration’s broader commitment to both social justice and effective fiscal management.
Anwar also acknowledged the political sensitivity surrounding subsidy rationalisation but stressed that careful implementation has been key to avoiding public backlash, citing the example of chicken and electricity subsidy restructuring.
The government’s move to remove chicken subsidies, he said, had saved RM1 billion annually without disrupting market stability.
“We want to increase revenue, but if the people are burdened, what’s the point? This is not some lofty economic theory — this is about real-life economics that affects real people,” he said.
Anwar added that targeted subsidy policies are not only aimed at protecting lower-income groups but also at fostering a more sustainable and transparent fiscal system.
Also present at the assembly were Deputy Finance Minister Lim Hui Ying and Treasury Secretary-General Datuk Johan Mahmood Merican. - October 15, 2025
