KUALA LUMPUR: Malaysia’s spending on subsidies and social assistance is expected to increase in 2026, with allocations potentially rising by up to RM30bil due to global cost pressures, says Finance Minister Datuk Seri Anwar Ibrahim.
The Prime Minister said a total of RM54.7bil has been allocated for 2026 for subsidies, assistance and incentives to safeguard the welfare of the people, while also stabilising the prices of selected goods and services.
These include consumption, agriculture and education subsidies, among others, in efforts to ease the financial burden faced by low- and middle-income groups, he said.
“The government spent more than RM70bil on total subsidies, assistance and incentives in 2024, while more than RM60bil was spent for the same purpose in 2025.
“However, following the crisis in the Middle East and rising subsidy costs, assistance and subsidies are expected to increase by up to RM30bil, bringing the 2026 allocation to a significantly higher level compared with spending in 2024 and 2025,” he said in a written parliamentary reply on Wednesday (June 24).
He was responding to Chong Chieng Jen (Pakatan Harapan–Stampin), who enquired about the details of the total subsidies spent by Putrajaya on public welfare in 2024, 2025 and 2026.
Anwar also said the government remains committed to ensuring that subsidies and assistance reach the intended target groups, in efforts to strengthen the social safety net and increase disposable income.
“This in turn will have a positive impact on the country's economic environment, in line with the Madani Economic Framework to raise the economic floor,” he said.
