PETALING JAYA: Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim said the Government’s focus on Ekonomi MADANI reforms, anchored on pro-growth policies, rakyat centric programmes and responsible fiscal management, has continued to strengthen Malaysia’s economic momentum.
“This approach has helped Malaysia build on the 5.2% growth recorded in 2024 and
2025, to achieve 5.4% growth in the first quarter of 2026. At the same time, responsible fiscal management has enabled the Government to cushion the impact of higher global fuel prices on the rakyat and businesses through measures such as BUDI MADANI RON95 (BUDI95) and enhanced assistance under BUDI Diesel, while continuing to support household spending and economic growth,” said Anwar in a release from the Ministry of Finance.
He added sustained job creation has lowered the unemployment rate in the country to 2.9%, the lowest in a decade, while inflation remained moderate at 1.6% during the quarter.
"These developments have helped support resilient domestic demand,” he added.
He added the government remains vigilant about the impact of the West Asia conflict on global demand, supply chains and market stability.
The government, he noted, had formalised a crisis management task force under the National Economic Action Council to monitor developments closely and coordinate real-time responses to emerging risks.
As of May 14, 2026, the government has announced RM15bil in financing support for micro, small and medium enterprises (MSMEs) through microfinancing, business loans and guarantees.
Adjustments to targeted fuel subsidies, together with continued support through BUDI95 and enhanced assistance under BUDI Diesel, are aimed at cushioning the impact of higher global energy prices on eligible households and businesses while supporting broader economic stability.
These measures are expected to improve subsidy efficiency, contain escalating fiscal costs, and further reduce leakages through strengthened enforcement against smuggling.
“Our immediate priority is ensuring economic stability and minimising the external impact of the crisis on the rakyat. At the same time, the MADANI Government remains committed to staying the course on Ekonomi MADANI reforms while ensuring that growth translates into tangible outcomes for the rakyat,” said Anwar.
