Politics · Malaysia Bureau
Malaysia slashes subsidy spending by RM15.67 billion in 2025
Federal auditors confirm the government has achieved a 40 per cent reduction in subsidy expenditure through targeted reforms. The subsidy bill has dropped to RM23.43 billion, marking significant progress in fiscal consolidation efforts.
LSN Malaysia ·
Malaysia's subsidy spending has plummeted to RM23.43 billion in 2025, representing a substantial 40.1 per cent decrease from previous levels, according to findings from the federal audit office released in Kuala Lumpur. The reduction of RM15.67 billion reflects the government's commitment to rationalizing expenditure on subsidies across key sectors of the economy. These reforms underscore efforts by authorities to improve fiscal sustainability while managing the cost of living impact on ordinary Malaysians. The audit findings demonstrate that targeted subsidy measures—focused on essential goods and services rather than broad-based support—have proven effective in reducing the overall fiscal burden. Officials say the reductions were achieved through a combination of strategic policy adjustments and improved programme efficiency, allowing the government to redirect savings towards other priority areas including infrastructure and social services.