Unfazed by public uproar, Malaysia’s Anwar says petrol subsidy cuts still a go

Published: 11:06am, 17 Jun 2025Updated: 11:08am, 17 Jun 2025

Malaysia will press on with planned cuts to petrol subsidies, Prime Minister Anwar Ibrahim has said, despite mounting public pushback over government measures to cut costs and raise taxes.

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The government is expected to slash costly petrol subsidies as early as July, a move that Anwar said was necessary to deflate the country’s multibillion-dollar subsidy bill and make sure the savings reach those most in need.

But the move has raised concerns that it could trigger inflation if consumers have to pay market price for fuel, in a country with more cars than people.

Analysts have warned that subsidy cuts could end up being a deal breaker for voters if not handled well, with the administration facing a string of elections over the next two years.

Anwar said the plan to remove blanket petrol subsidies would free up much-needed funds to aid the country’s poor and upgrade the quality of education, healthcare and other public services.

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“I would like to reiterate that there is no issue of the RON95 increase affecting 85 to 90 per cent of our people,” he told reporters on Monday, referring to the subsidised fuel grade.

“Whatever the opposition says is just a gimmick, a desperate attempt to portray the people as suffering, to fuel more negative narratives.”

  

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