KUALA LUMPUR — Prime Minister Datuk Seri Anwar Ibrahim has reiterated that the government will not raise the price of RON95 petrol for Malaysians, while affirming that steps are being taken to ensure fuel subsidies are no longer enjoyed by foreigners and the ultra-wealthy.
Addressing delegates at the closing of the Johor PKR Congress 2025 at the Persada International Convention Centre today, Anwar stressed the need for a more targeted subsidy mechanism while assuring that the welfare of ordinary Malaysians will not be compromised.
“We are now thinking about targeting fuel subsidies. There was an early proposal to raise fuel prices and then provide aid. I and the Cabinet did not agree.
“We do not agree with raising fuel prices. Prices can be lowered gradually depending on current market conditions, but fuel prices must be increased for foreigners.
“There are 3.5 to 4 million foreigners in Malaysia. They are receiving subsidised fuel. What is wrong if we introduce targeted subsidies for foreigners? Foreigners with vehicles are costing us RM3 billion to RM4 billion in subsidies.
“So if we withdraw the subsidies, anyone wanting to buy petrol might just need to show their identification card. There will be detailed mechanisms to consider.”
The Prime Minister argued that no country should continue to subsidise fuel for the affluent or non-citizens, and took aim at Opposition MPs for defending these groups.
“But let us not reject subsidy targeting. Which country in the world gives subsidies to foreigners? Which country subsidises petrol for those owning Rolls-Royces?
“If we implement this, we would only target the top 5% — the ultra-rich. These people are not even making noise themselves, they are using two or three Members of Parliament to speak for them.
“These Opposition MPs have become spokespersons for the super-rich, for people who own Rolls-Royces — and then ask PAS MPs to defend them.
“Because others are not affected. I guarantee that no one in this hall will be affected by fuel subsidy targeting — unless there are foreigners here. Any Bangladeshis in this hall? If there are, then yes, they will be affected.”
Anwar further elaborated on the government’s intention to review subsidies related to gas and liquefied natural gas (LNG), following concerns raised by smaller businesses and farmers.
“Likewise, on subsidy realignment — Malaysia is the country with the highest level of subsidies, I mentioned this yesterday. But just like with electricity, 85% [of people] are not affected.
“But perhaps our communication has been weak.
“As for gas subsidies, it is true that some smallholders and others are still facing problems, even though provisions have been made through PADU to compensate them for their losses.
“This will also be reviewed to ensure small companies are not burdened.”
He also acknowledged the need to strengthen government messaging around electricity subsidies to ensure the public properly understands who is impacted.
“Malaysia is the country with the highest subsidies. The electricity subsidy — 85% [of people] are not affected, but the way we explain it to the public is very weak.”
In addition, Anwar hinted at further evaluation of the newly introduced e-Invoice system to prevent revenue leakage.
The Prime Minister's comments today reaffirm the government’s intention to introduce a more equitable subsidy structure while maintaining support for those most in need. The fuel subsidy rationalisation, which was first announced during the tabling of Budget 2025 in October last year, is expected to be implemented by mid-2025.
Anwar, who also serves as Finance Minister, previously said that up to RM8 billion in subsidies could be saved by preventing leakages that benefit non-citizens and high-income earners. The savings, he said, would be redirected to critical sectors such as education, healthcare, and public transport. - May 24, 2025
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