PUTRAJAYA Aug 30, 2026 — Prime Minister Datuk Seri Anwar Ibrahim announced six immediate measures to ease the cost of living, saying households and small businesses could not wait until Budget 2027.
Speaking at the National Day Eve address for Malaysia’s 69th Independence Day at the Putrajaya International Convention Centre, Anwar said the government would act from 1 September rather than defer the measures to the October budget.
“Usually I would say wait for the national Budget. But it appears the people cannot wait because the pressure of living costs does not wait until October,” he said.
The most closely watched change is the restoration of the monthly BUDI95 subsidised RON95 quota from 200 litres to 300 litres, covering more than 16 million eligible motorists. The subsidised pump price remains RM1.99 a litre.
The quota had been cut from 300 litres to 200 litres from 1 April after fuel-supply uncertainty linked to conflict in West Asia.
Eligible owners of diesel pickups and jeeps — more than 500,000 vehicles — will see their monthly Budi Diesel allocation raised to 400 litres. Both fuel changes take effect on 1 September.
The other five measures announced as part of the same package are:
- School maintenance: The 2027 allocation for upkeep of all school types will rise 50 per cent, from RM1 billion to RM1.5 billion. The increase covers national schools, Chinese and Tamil vernacular schools, religious schools, tahfiz, pondok institutions and special-education schools. The Education Ministry has been told to review district-level repair requests so work can begin as early as possible.
- AI for youth: An “AI for the Rakyat” programme will be opened to Malaysians aged 18 to 30. Up to 100,000 participants who complete prescribed modules will receive three months of free access to selected AI applications.
- Public healthcare: RM1 billion will be allocated to digitalise public health services, including electronic medical records and internet connectivity at 150 public hospitals and more than 2,000 clinics, with the aim of shortening waiting times.
- e-Invoice threshold: The annual sales threshold for mandatory e-invoicing will be raised from RM1 million to RM3 million, exempting more small and medium firms from the requirement.
- Micro-loans and grants: Microfinance funds will be increased by RM1 billion to RM6 billion for 2026. A new Geran Sejahtera Madani grant of RM200 million will target hawkers, night-market traders and home-based businesses.
Anwar also said billions of ringgit seized from illegal activities through court processes would be channelled back to the public, especially education and healthcare.
In a post after the address, Anwar said the measures were meant to give “real meaning” to this year’s independence celebrations and that further announcements would follow during Malaysia Day events in Sarawak and in Budget 2027.
“I and the entire MADANI government team will continue to listen to the voices and anxieties of the people. We will continue to work hard to ensure every national success is translated into benefits felt by the people,” he wrote.
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