Malaysia 2025 Budget: RON95 Petrol Subsidy May Be Adjusted

Malaysia's 2025 budget will be officially announced by Finance Minister and Prime Minister Anwar Ibrahim at 4 PM on October 18, and this budget will mention policies related to automobiles and transportation. The much-anticipated RON 95 petrol subsidy issue is expected to be on the agenda. Despite the government's previous statement that it would not consider this move, the implementation of the diesel subsidy policy has led to widespread speculation about adjustments to the RON 95 petrol subsidy.

Finance Minister and Prime Minister Anwar Ibrahim once promised to strengthen Malaysia's financial situation and to reduce government debt from over 60% of GDP, with subsidy cuts being key to achieving this goal.

（Malaysia Petrol price）

On June 10, the Malaysian government implemented a diesel subsidy reduction policy, which is expected to save about RM 4 billion per year. This move led to a significant increase in diesel prices by 56%, bringing pressure to the livelihoods of the people and the operation of enterprises. Despite the government's provision of cash assistance to some affected sectors, public dissatisfaction continues to ferment. Meanwhile, the RON95 petrol subsidy, which accounted for the bulk of the RM 810 billion total subsidies in 2023, has received much attention because of its perceived excessive favoritism towards high-income groups. The government plans to cut this year's petrol subsidy to RM 528 billion to ease financial pressures.