PETALING JAYA: The government’s petroleum subsidy expenditure is expected to reach RM40 billion this year as a global supply crisis pushes crude oil prices above US$120 per barrel, said Prime Minister Datuk Seri Anwar Ibrahim.
Anwar, who is also finance minister, said monthly subsidies for petrol, diesel and liquefied petroleum gas (LPG) rose from about RM800 million in January and February to nearly RM5 billion in March and April, before easing to around RM3 billion a month between June and August.
He said the government was balancing efforts to shield Malaysians from rising fuel prices with the need to maintain fiscal sustainability.
“The government had reprioritised its annual expenditure to focus on initiatives that deliver the greatest benefits to the public and the economy.
“This exercise takes into account the operational needs and priorities of each ministry, particularly to ensure that high-impact programmes and essential services, including education, healthcare and financial assistance, remain protected,” he said in a written parliamentary reply to Datuk Seri Mohd Shafie Apdal (Warisan-Semporna), who had sought details of petroleum subsidies.
Anwar said the government would strengthen fiscal discipline by curbing operating expenditure, improving spending efficiency and minimising leakages in the delivery of programmes and subsidies.
He added that enforcement had been intensified to ensure assistance and subsidies reached eligible recipients, allowing public funds to be used more effectively.
“The government will continue to balance the need to protect Malaysians from rising fuel prices with prudent expenditure management to ensure that higher subsidy costs can be absorbed without compromising the country’s fiscal sustainability,” he said.
