Malaysia's Anwar Unveils Cost of Living Relief Package Ahead of Protest

 

Malaysian Prime Minister Anwar Ibrahim delivers a speech during the 22nd Shangri-La Dialogue summit in Singapore, on May 31, 2025 [Anupam Nath/AP]

Malaysia's Anwar Unveils Cost of Living Relief Package Ahead of Protest

Kuala Lumpur, Malaysia – July 23, 2025 – Malaysian Prime Minister Anwar Ibrahim today announced a comprehensive package of measures aimed at easing the burden of rising living costs for citizens.¹ The announcement, made during a televised address on Wednesday, comes just days before a planned rally in Kuala Lumpur by the opposition Perikatan Nasional coalition, demanding his resignation over these very issues.²

Direct Aid and Price Reductions

Among the key initiatives, Anwar announced a 100 ringgit (approximately $24 USD) cash handout for all adult citizens.³ This one-off payment, redeemable at over 4,000 stores nationwide, is set to benefit an estimated 22 million Malaysians and can be utilized between August 31 and December 31, 2025.⁴

In a move to directly impact household budgets, the government will also reduce the price of subsidized RON95 petrol from 2.05 ringgit per liter to 1.99 ringgit per liter for citizens.⁵ Furthermore, planned hikes in toll rates on 10 highways across the country will be frozen, aiming to keep transportation costs down.⁶

An Additional Public Holiday to Boost Local Economy

Adding to the relief measures, an extra public holiday will be observed on September 15, 2025, coinciding with Malaysia Day, the holiday commemorating the nation's federation.⁷ This additional holiday is expected to encourage domestic tourism and provide Malaysians with a longer break to spend with families.⁸

Economic Impact and Expert Opinions

Economics Professor Yeah Kim Leng of Sunway University in Kuala Lumpur welcomed the measures, stating they would be particularly beneficial for "Malaysian households, especially those in the low and middle-income groups."

Lavanya Venkateswaran, a senior economist at Oversea-Chinese Banking Corp, viewed the measures as aligning with the government's efforts to support economic growth, which is forecast to slow from an annualized 4.4 percent in the first half of 2025 to 3.5 percent in the second half. Venkateswaran noted that "The fiscal package announced today, taken together with the central banks’ 25bps rate cut earlier in July, suggests that the authorities are stepping up counter-cyclical policies." She estimated the cash handouts would provide marginal support for household consumption at a relatively nominal cost of 0.1 percent of gross domestic product.

Addressing Public Discontent Ahead of Protest

The Prime Minister's announcement is strategically timed, preceding a large protest scheduled for Saturday in Kuala Lumpur.⁹ Organized by the opposition Perikatan Nasional coalition, the rally is expected to draw up to 15,000 people demanding Anwar's resignation over rising living costs and alleged failures in implementing promised reforms.

Anwar acknowledged public concerns during his address, stating, "I acknowledge the complaints and accept that the cost of living remains a challenge that must be addressed, even though we have announced various measures thus far."¹⁰ He also indicated that further initiatives to assist those in poverty would be launched in the coming days.¹¹

While the measures are likely to be met with some relief, their long-term impact on Malaysia's fiscal health and the government's ability to manage persistent cost of living pressures will be closely watched.