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Malaysia Saves RM800 Million Through Targeted RON95 Fuel Subsidy, Says PM Anwar

Malaysia

Kuala Lumpur, December 21, 2025 – The Europe Today: The Malaysian government has saved RM800 million since the implementation of the Budi Madani RON95 (Budi95) programme on September 30, Prime Minister Datuk Seri Anwar Ibrahim said on Sunday.

Anwar, who also serves as finance minister, said the savings resulted from better targeting of fuel subsidies exclusively for Malaysians, effectively curbing leakages that had previously benefited more than 3.5 million foreigners and fuel smuggling activities.

“Every ringgit saved is channelled back to the people through initiatives such as the Rahmah Cash Contribution (STR) and the Rahmah Basic Contribution (Sara), in addition to upgrading clinics and hospitals, improving roads and strengthening infrastructure,” he said in a Facebook post on December 21.

The prime minister noted that targeted fuel subsidies had been debated for more than two decades by successive governments, but none had the political will to implement them until the Madani government took the decision to introduce Budi95.

Under the programme, all Malaysian MyKad holders aged 16 and above with a valid driving licence are eligible to purchase up to 300 litres of subsidised RON95 fuel per month at RM1.99 per litre, compared with the unsubsidised price of RM2.60 per litre.

Anwar said the initiative reflects the government’s commitment to fiscal responsibility while ensuring that savings are redirected to programmes that directly benefit the people and strengthen national infrastructure.