Kuala lumpur: The government remains committed to the targeted subsidy approach for RON95 petrol under the BUDI MADANI RON95 (BUDI95) programme and rejects the World Bank’s proposal to raise it to market price, said Prime Minister Datuk Seri Anwar Ibrahim. He stated that the RON95 targeted subsidy is a prudent measure that has successfully reduced government expenditure without burdening the people.

According to BERNAMA News Agency, the World Bank proposed increasing the price to RM2.65 per litre for all petrol, followed by providing subsidies for specific categories. In response, the government decided to lower the RON95 price to RM1.99 per litre for Malaysian citizens and RM2.60 per litre for foreigners. Anwar emphasized that this decision reflects the government’s prudent approach and actions that benefit the people, noting the positive reception of the targeted RON95 subsidy throughout Malaysia.

Anwar, also serving as the Finance Minister, highlighted that comprehensive subsidy targeting ensures the majority of citizens continue to receive assistance while combating subsidy leakages to non-citizens and business use. He mentioned the government’s strategy in ending subsidies for chicken and eggs, which resulted in stable prices and sufficient supply without affecting the people. The MADANI government aims to achieve annual savings of around RM15.5 billion through the floating of chicken and egg prices, and the targeting of electricity, diesel, and RON95 subsidies.

In Budget 2026, Anwar noted the government’s decision not to introduce new taxes, focusing instead on improving governance, targeting subsidies, and strengthening tax compliance. He explained that Malaysia is able to significantly increase allocations without new taxes due to targeted subsidies and measures such as savings and preventing leakages. Anwar urged state governments to adopt similar measures, avoiding new taxation that could burden the people.