Anwar: Subsidy rationalisation must not come at the expense of the poor

Prime Minister Datuk Seri Anwar Ibrahim speaks at the 14th Malaysia Madani Intellectual Forum in Kuala Lumpur November 6, 2026, where he stressed the need to protect vulnerable groups during economic reforms. — Bernama pic

First Published: Saturday, 07 Nov 2026 1:18 PM MYT

Last Modified: Saturday, 07 Nov 2026 1:22 PM MYT

KUALA LUMPUR, Nov 7 — The implementation of subsidy rationalisation must not under any circumstances compromise the livelihoods of the poor, while the economic reform agenda must courageously tackle issues of corruption and the leakage of national funds, stressed Prime Minister Datuk Seri Anwar Ibrahim.

The prime minister said that although rationalisation steps such as targeting RON95 petrol subsidies are important to ease the government’s fiscal burden and curb wastage, their implementation must take into account the reality of daily life for the majority of the rakyat who are still struggling to meet their basic daily needs.

“For me, the responsibility, the national pledge, the nation’s pledge, governance must guarantee that everyone has food to eat,” he said at the 14th Malaysia Madani Scholar Forum here last night.

Also present were Minister of Agriculture and Food Security Datuk Seri Mohamad Sabu, Minister of Higher Education Datuk Seri Zambry Abd Kadir, SD Guthrie Berhad Group President and Chief Executive Officer Mohd Haris Mohd Arshad, and PNB Research Institute Chief Executive Officer Sarena Che Omar.

Anwar, who is also the minister of finance, said subsidies for the poor should not be regarded merely as a source of dependency, but rather evaluated based on their needs to sustain life and opportunities to improve their economic standing.

Elaborating further, he said any form of welfare assistance that creates prolonged dependency should be improved through the provision of job opportunities and the empowerment of recipients’ economic capabilities, rather than by slashing subsidies to the point of neglecting their basic welfare.

Meanwhile, he stressed that economic reform will not achieve its goals if it is only focused on policy formulation without being accompanied by a commitment to integrity and accountability by the corporate sector and all levels of government administration.

“How much leakage? How much corruption? How much slippage? How much of the tens of billions in subsidies has been embezzled and stolen? What, did this not happen? It happened,” he said.

In this regard, Anwar demanded a comprehensive commitment from ministries, departments, government agencies, and government-linked companies (GLCs) to ensure that fund leakages and malpractices are curbed comprehensively.

He said this step is crucial so that government allocations and aid truly reach the target groups, thereby ensuring that the Madani economic policy can be implemented based on the principles of justice and humanity. — Bernama