Anwar warns ministries against blank cheque approach while Malaysia grapples with subsidy burden

PUTRAJAYA, Sept 8 — Prime Minister Datuk Seri Anwar Ibrahim has warned against the unsustainable trajectory of public spending, stressing that the government cannot indefinitely expand allocations while managing the growing cost of subsidies.

Speaking at the Plantation and Commodities Ministry’s monthly assembly today, Anwar called for greater fiscal discipline, arguing that the government must move away from the habit of addressing every crisis simply by increasing funds.

“There is a need for greater discipline in managing public expenditure. We cannot continue responding to every problem simply by increasing allocations, particularly when the cost of subsidies remained high,” Anwar said.

“We have already paid RM40 billion in subsidies. This is not a small amount.”

The PM stressed that rising expenditure must be coupled with measurable outcome, questioning the long-term viability of the current spending model.

“If we keep increasing (spending), how long can we continue?”

Anwar maintained that the government’s primary responsibility is to ensure that public spending produces meaningful results for the people, rather than merely increasing budget lines year after year.

His remarks comes amid demands for increased allocations from some ministries at a time the government is grappling with the significant fiscal burden of direct subsidies

On Aug 30, Anwar noted that petrol and diesel subsidies, which benefit a wide spectrum of income groups including the M40 and T20, cost the government approximately RM40 billion.

Despite this fiscal pressure, the government continues to balance austerity with social welfare. Anwar recently announced the restoration of the basic entitlement for the Budi Madani RON95 programme, increasing the limit from 200 to 300 litres a month to support over 16 million users.

Today, Anwar acknowledged that many Malaysians continue to struggle with the cost of living, admitting that the government does not assume all problems have been solved.

He noted that while six immediate measures were introduced last month, further steps are necessary to ease household pressures.

These considerations are expected to be central to the formulation of Budget 2027, as the administration weighs the need for targeted assistance against the imperative of maintaining a stable fiscal position.