Malaysia will raise its subsidized gasoline quota from 200 liters to 300 liters per month and diesel quota from 300 liters to 400 liters monthly, effective September 1, 2026. More than 16 million users will benefit from the restored RON95 fuel subsidy, while over 500,000 eligible owners of diesel pickup trucks and four-wheel-drive vehicles will enjoy the higher diesel subsidy [1, 2, 3].
The announcement came from Prime Minister Anwar Ibrahim during his National Day address on August 30. He said, "Although various measures have been implemented, I, the Deputy Prime Minister and the Cabinet have never assumed that we have solved all the problems, and this is not a curtain to conceal the people’s concerns. I understand that the people are still struggling with the cost of living. Therefore, on the eve of National Day, I have had to make efforts, seek solutions and take steps to announce something that can provide temporary relief... for schoolchildren, youths, housewives and mothers" [2].
Besides fuel subsidies, the government announced a 50% increase in the 2027 school maintenance budget, from RM1 billion to RM1.5 billion. This funding supports maintenance for national, Chinese, Tamil, religious, tahfiz, pondok, and special education schools nationwide [2, 3]. The Education Ministry will start scrutinizing infrastructure repair applications at the district level so that maintenance work can begin in January 2027 [2, 3].
Additional measures include the launch of the "AI for the People" program, targeting Malaysian youths aged 18 to 30, digitalization of healthcare services, implementation of e-Invoicing, and expansion of microfinancing options [2, 3].
All six measures announced by Anwar Ibrahim will take effect starting September 1, 2026, aiming to provide immediate relief amid ongoing economic pressures [1, 2, 3].
School maintenance work is scheduled to commence in January 2027 following district-level approval of repair projects [2, 3].
