Summary
- Federal subsidy spending fell 40.1% to RM23.43 billion in 2025.
- Petrol subsidies dropped 46.5% to RM10.51 billion, while diesel subsidies fell 48.2% to RM5.98 billion.
- Lower oil prices and targeted fuel subsidy reforms contributed to the reduction.
KUALA LUMPUR, October 17 — Malaysia cut subsidy expenditure by RM15.67 billion in 2025 as targeted fuel subsidy reforms and lower global oil prices reduced government spending.
The Auditor-General’s Report said total subsidies fell 40.1% to RM23.43 billion from RM39.10 billion in 2024. Petrol subsidies declined to RM10.51 billion, while diesel subsidies fell to RM5.98 billion.
However, spending on welfare grants and assistance surged to RM20.36 billion from RM4.24 billion, partly reflecting SARA, STR and BUDI Madani assistance, as the government shifted support towards targeted programmes.
