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Malaysia outlines new cost-of-living measures

NEWS

August 30, 2026 at 11:20 UTC

2 min read
Fuel pumps at a city gas station symbolizing Malaysia cost-of-living and fuel allowance measures

Key Points

  • 01Malaysia will restore the BUDI95 petrol quota to 300 litres per month from Sept. 1, 2026
  • 02The BudiDiesel quota for eligible users will rise to 400 litres per month on the same date
  • 03Fuel quota changes are expected to benefit over 16 million petrol users and more than 0.5 million diesel vehicle owners
  • 04Additional steps include school funding, digital health upgrades, micro-financing, an AI programme, and e-invoicing relief

Expanded fuel quotas to ease living costs

Prime Minister Anwar Ibrahim has announced that the BUDI95 subsidised RON95 petrol quota will be restored to 300 litres per month, with effect from Sept. 1, 2026. At the same time, the BudiDiesel subsidised diesel quota for eligible users will be raised to 400 litres per month.

The government expects these fuel quota adjustments to benefit more than 16 million RON95 users. Over 0.5 million eligible diesel pickup and jeep owners are also projected to gain from the higher BudiDiesel allocation.

These fuel-related decisions are part of a broader effort to address living costs, with the measures presented as steps to provide relief to households and vehicle owners.

Support for education and healthcare systems

Alongside fuel subsidies, the package includes increased funding for school maintenance. The additional resources are aimed at improving the condition and functionality of educational facilities.

The government will also upgrade digital health systems. These improvements are intended to enhance the delivery and management of healthcare services across the country.

Funds seized or forfeited in anti-corruption proceedings will be channelled into government programmes in education and healthcare. This step links the recovery of illicit gains directly to social sector spending.

Measures for businesses and digital transition

To support smaller enterprises, the package expands micro-financing facilities for small businesses. This is designed to improve access to capital for entrepreneurs and micro and small firms.

The revenue threshold exempting companies from e-invoicing requirements will be raised to 3 million ringgit a year. This adjustment is intended to ease compliance obligations for lower-revenue businesses.

AI access and youth-focused initiatives

An artificial intelligence programme will be rolled out to provide free access to selected enterprise applications for Malaysians aged 18–30. This initiative targets younger users and aims to widen exposure to AI tools and digital solutions.

Together with the business and social measures, the youth-focused AI programme forms part of a wider strategy to combine immediate cost-of-living support with longer-term investments in skills, technology and public services.

Key Takeaways

  • 01Malaysia is pairing higher subsidised fuel quotas with targeted investments in education, healthcare and digital infrastructure.
  • 02Small businesses receive both financing support and relief from e-invoicing obligations, signalling attention to operational costs and regulatory burden.
  • 03Youth-oriented AI access suggests cost-of-living measures are being linked with efforts to build digital capabilities among younger Malaysians.

References

  1. https://au.investing.com/news/stock-market-news/malaysia-pm-unveils-measures-to-tackle-living-costs-support-local-businesses-4622178
  2. https://malaysiakini.com/news/783249
  3. https://www.malaysiakini.com/news/783249
  4. https://www.scmp.com/news/asia/southeast-asia/article/3365758/malaysias-anwar-unveils-cost-living-measures-opposition-rises