Malaysian PM announces cash handout for all adults amid cost-of living protests

Malaysian Prime Minister Anwar Ibrahim has unveiled a new cash aid initiative and pledged to reduce fuel prices in an effort to address mounting public frustration over the rising cost of living.

The announcement, made during a televised address, comes just days before a major protest scheduled in Kuala Lumpur, which opposition groups say could draw up to 15,000 people demanding Anwar’s resignation, Caliber.Az reports, citing foreign media.

As part of the new relief measures, every Malaysian aged 18 and over will receive a one-off cash handout of 100 ringgit (approximately $23.70 or 760 baht), to be distributed starting August 31. The government has increased its cash assistance budget to 15 billion ringgit for 2025, up from the originally allocated 13 billion.

“I acknowledge the complaints and accept that the cost of living remains a challenge that must be addressed, even though we have announced various measures thus far,” Anwar stated.

The cash handout is part of a broader fiscal strategy that includes increased electricity tariffs for large power users, a minimum wage hike, and an expanded sales and services tax. While these policies are primarily targeted at large corporations and high-income groups, critics warn the cost burden could eventually trickle down to lower and middle-income households.

In addition to direct financial aid, Anwar pledged to announce more anti-poverty initiatives on Thursday. He also confirmed that long-anticipated reforms to fuel subsidies would be detailed before the end of September. The widely used RON95 petrol will see a price reduction from 2.05 ringgit to 1.99 ringgit per litre — one of the lowest globally — though foreign nationals will be excluded from the subsidy and must pay market rates.

Analysts have raised concerns about the fiscal impact of the measures. “Nevertheless, this comes at a cost, especially on how the government will finance it, and likely put pressure on its fiscal target,” said Kenanga Investment Bank economist Muhammad Saifuddin Sapuan.

Kathleen Chen of Fitch Ratings warned that delays or limited progress in subsidy reforms “could jeopardise the government’s goal to reduce its deficit to 3% of GDP by 2028.” Fitch projects Malaysia’s government debt to remain high, around 76.5% of GDP in 2025.

By Vafa Guliyeva