Anwar: Subsidies Still Needed for the Poor, and Tax Incentives Are Government Aid Too

KUALA LUMPUR, November 7, 2026 — Prime Minister Datuk Seri Anwar Ibrahim has reiterated that subsidies are still needed for poor families, while pointing out that tax incentives given to companies are also a form of government assistance.

“At the MADANI Scholars Forum last night, I stressed that subsidies are still needed. There are families who live hand to mouth, who cannot necessarily afford to put aside food for a week. For them, government assistance is important to carry on living,” Anwar wrote in a post on X on Saturday night, accompanied by a video clip from the forum.

“Ironically, there are those who want certain subsidies ended on the grounds of competitiveness and productivity, but at the same time push for companies to be given tax incentives. One is called a subsidy, the other an incentive. Both are government assistance,” he added.

Anwar made the remarks at the 14th MADANI Scholars Forum (Forum Ilmuwan MADANI) on Friday night, which focused on food security. Agriculture and Food Security Minister Datuk Seri Mohamad Sabu, Higher Education Minister Datuk Seri Dr Zambry Abd Kadir, SD Guthrie Berhad group president and chief executive officer Mohd Haris Mohd Arshad and PNB Research Institute chief executive officer Dr Sarena Che Omar were also present, Bernama reported.

According to the Prime Minister’s Office transcript, Anwar said he agreed that subsidies needed to be rationalised, as in the case of RON95 petrol, because doing so reduces the burden on the country, stops leakages and ends high subsidies for foreigners who do not pay tax. However, he cautioned that ending subsidies altogether required care, not only because of political repercussions but because of the reality of people’s lives.

“For me, the responsibility, the national pledge, the nation’s pledge, governance must guarantee that everyone has food to eat,” he said, as reported by Bernama.

Anwar, who is also Finance Minister, said subsidies that create prolonged dependency should be improved by providing job opportunities and strengthening recipients’ economic capabilities, rather than by cutting assistance to the point of neglecting basic welfare.

He also said economic reform would not succeed without integrity, asking how much of the tens of billions of ringgit in subsidies had been lost to leakage and corruption, and called for a comprehensive commitment from ministries, departments, agencies and government-linked companies to curb such losses.

Source: Datuk Seri Anwar Ibrahim’s X post, November 7, 2026; Prime Minister’s Office speech transcript; Bernama, November 6, 2026.

Source post: Datuk Seri Anwar Ibrahim on X | Source: https://bernama.com/en//news.php?id=2631172

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