Subsidies, aid and toll freeze – Key takeaways from PM Anwar’s big announcement

SHAH ALAM - Malaysians can expect financial relief and cost-of-living support in 2025 following Prime Minister Datuk Seri Anwar Ibrahim’s sweeping announcement earlier today.

Among the key measures: a one-off RM100 cash aid for adults, the doubling of Rahmah sales allocation, postponed toll hikes, targeted RON95 petrol subsidies, lower electricity bills and increased minimum wages.

The government also pledged to eradicate hardcore poverty, improve healthcare staffing and declared Sept 15 as an additional public holiday to mark Malaysia Day.

Here are the key takeaway from Anwar's announcement:

 Financial Assistance:

• A one-off RM100 payment through MyKad for every adult citizen aged 18 and above under the Sumbangan Asas Rahmah (SARA) programme, starting Aug 31, 2025. This can be spent on basic necessities at over 4,100 stores until Dec  31, 2025. This assistance is per individual, meaning a household with multiple adults can receive more (e.g: RM400 for a couple with two adult children).
• Increased overall allocation for Sumbangan Tunai Rahmah (STR) and SARA to RM15 billion for 2025, the highest in history.
• Increased cash assistance under the Department of Social Welfare (JKM) to RM2.9 billion, which includes higher monthly welfare aid for the elderly and children from poor families.

Cost of Living Relief:

• Minimum Wage Increase: The minimum wage increased to RM1,700 from RM1,500, effective Feb 1, 2025 and fully enforced by Aug 1, 2025.
• Living Wage for GLIC/GLC Employees: Companies linked to the government (GLIC and GLC) ensure 153,000 workers receive a living wage of at least RM3,100 per month.
• Paddy Farmers' Support: The purchase floor price for paddy increased to RM1,500 (2025) and the Paddy Price Subsidy Scheme increased to RM500 (2023).
• Rubber Smallholders' Support: The Rubber Production Incentive (IPG) increased to RM3.00 (2024).
• Expanded Rahmah Madani Sales: The allocation for "Jualan Rahmah Madani 2025" has doubled to RM600 million, allowing for more frequent sales, wider coverage (all 600 state constituencies) and a greater variety of goods for citizens.
• Toll Rate Freeze: The government will bear over RM500 million to postpone scheduled toll rate increases for 10 highways this year, allowing citizens to continue paying the same toll rates.
• Reduced RON95 Petrol Price: Once the targeted RON95 petrol subsidy is implemented, Malaysian citizens will enjoy a lower price of RM1.99 per liter, benefiting approximately 18 million car drivers and motorcyclists. Foreigners will pay the market price.
• Lower Electricity Bills: 85 per cent of domestic electricity consumers experienced a decrease in their electricity bills for July 2025 usage compared to the first half of 2025, with reductions of up to 14 per cent.

 Employment and Healthcare:

• Unemployment has decreased to 3.0 per cent (May 2025), the lowest in over a decade.
• Over 250,000 new jobs were created in 2023 and 2024.
• The Health Ministry will expedite efforts to fill over 4,352 contract doctor positions in health facilities nationwide by the end of 2025, aiming to provide better healthcare services.

Poverty Eradication:

• Nearly 150,000 hardcore poor households from 2023 have moved out of the hardcore poor category by the end of 2024.
• The "Sejahtera Madani" initiative will be launched to continue assisting hardcore poor and poor groups through government and corporate sector collaboration.

Community Development and Education:

• "Sejati Madani" has channelled up to RM100,000 to communities for income-generating economic activities, leading to over 8,600 community economic activities in villages.
• The "Kampung Angkat Madani" (Adopted Village Madani) programme has expanded from 40 to 200 villages this year, benefiting community-level citizens.
• The "Sekolah Angkat Madani" (Adopted School Madani) initiative aims to have 1,000 adopted schools by the end of the year, ensuring the best education for children.

Public Holiday:

• Sept 15, 2025 (Monday), has been declared an additional public holiday in conjunction with Malaysia Day celebrations, to foster unity and encourage family time and domestic tourism.