KUALA LUMPUR – Prime Minister Datuk Seri Anwar Ibrahim today unveiled several key initiatives aimed at easing cost-of-living pressures and supporting Malaysians through a period of structural economic transition. Among the headline measures is a one-off RM100 cash aid for every adult Malaysian, disbursed via MyKad under the Sumbangan Asas Rahmah (SARA) programme.
This comes alongside a planned reduction in RON95 petrol prices to RM1.99 per litre following the rollout of targeted subsidies.
Anwar said the RM100 credit — effective from August 31 to December 31 — can be used to purchase essentials at over 4,100 outlets nationwide. It will benefit approximately 22 million individuals, bringing the total SARA and Sumbangan Tunai Rahmah (STR) allocation to RM15 billion this year.
“This is a gesture of appreciation in conjunction with National Day and a step to ease the people’s cost of living,” he said during a special address broadcast live across national platforms.
Anwar also revealed that inflation had dropped to 1.1% in June — the lowest in over four years — but food prices remained high, justifying the need for continued interventions.
Other major announcements from the Prime Minister’s speech:
Economic performance and labour market
Malaysia’s economy grew by 4.4 per cent in Q1 2025; early estimates suggest Q2 growth may reach 4.5 per cent.
Malaysia rose 11 places to 23rd in the 2025 World Competitiveness Index.
Approved investments hit a historic high of RM384 billion in 2024 — a 17% increase from the previous year.
The ringgit strengthened over 5 per cent against the US dollar as of mid-2025, now standing at RM4.23, placing it among Asia’s top five performing currencies.
Unemployment has dropped from 3.9% (2022) to 3.0% (May 2025), the lowest in over a decade.
More than 250,000 new jobs were created in 2023 and 2024.
Wages and healthcare workforce
Minimum wage increased to RM1,700 starting August 1, 2025 (from RM1,500).
GLICs and GLCs have ensured that 153,000 workers now receive a living wage of at least RM3,100.
The Ministry of Health will expedite the hiring of over 4,352 medical personnel, especially contract doctors, by the end of 2025.
Poverty eradication and welfare programmes
Nearly 150,000 households exited extreme poverty between 2023 and 2024.
The Sejahtera Madani programme, to be launched tomorrow, will enhance support for low-income groups through collaboration with the corporate sector.
Cash aid under the Welfare Department has been increased to RM2.9 billion, including higher monthly payments for senior citizens and children from poor households.
Support for farmers and smallholders
Paddy floor price raised to RM1,500 per tonne.
Rice Price Subsidy Scheme increased to RM500 per tonne.
Rubber Production Incentive (IPG) raised to RM3.00 per kilogram in 2024.
(Subhead) Grassroots and education-focused initiatives
Sejati Madani channels up to RM100,000 per community for income-generating activities; over 8,600 projects have been implemented so far.
Kampung Angkat Madani expanded from 40 to 200 villages this year.
Sekolah Angkat Madani now targets 1,000 adopted schools by year-end, with strong corporate sector involvement.
Immediate relief measures:
RM100 one-off MyKad credit for all adults (details above).
Extra public holiday on Monday, September 15, 2025, in conjunction with Malaysia Day.
Rahmah Sales programme funding doubled from RM300 million to RM600 million to expand nationwide coverage and increase the variety of affordable goods.
Toll hikes suspended: Scheduled rate increases for 10 expressways have been deferred, saving the public over RM500 million. Affected highways include the Senai-Desaru Expressway (SDE), East Coast Expressway Phase 2 (LPT2), South Klang Valley Expressway (SKVE), Butterworth Outer Ring Road (LLB), and the MEX Highway.
Targeted RON95 fuel subsidy:
RON95 petrol price will be reduced to RM1.99 per litre when the targeted subsidy kicks in.
Expected to benefit 18 million drivers and motorcyclists, including youths and gig workers.
The government spent nearly RM20 billion annually in 2023 and 2024 on RON95 subsidies.
Foreign nationals will continue paying market rates.
Final subsidy mechanism to be announced by end-September 2025.
Electricity tariff reform:
Despite public concern, 85% of domestic users will see a reduction of up to 14 per cent in electricity bills for July 2025 usage, compared to the first half of the year.
Looking ahead
The Prime Minister reiterated that the government’s top priority remains the welfare of the people. He said the upcoming 13th Malaysia Plan (RMK-13), to be tabled on July 31, will emphasise inclusive development for all states, regardless of political affiliation.
He also confirmed that the 2026 Madani Budget, to be tabled in October, will build upon today’s measures and further expand support for Malaysians.
“From the beginning, my focus has never wavered: the people, the people, and the people,” said Anwar. “Every policy, every decision, every effort we make today and tomorrow is rooted in improving the people’s well-being.” – July 23, 2025