KUALA LUMPUR, Oct 28 — Subsidies in Malaysia have come a long way since independence when it was first introduced decades ago as a tool for economic support in boosting agriculture production and social welfare.

In recent years, however, the Malaysian federal government has embarked on a rationalisation exercise to implement targeted subsidy policies rather than blanket ones as part of the country’s ongoing fiscal reforms.

By definition, subsidies are support elements provided by the federal government, which are directly channelled to producers, businesses or service providers to stabilise prices.

Indirectly, subsidies enable goods and services to become more affordable, subsequently easing the financial burdens of low and middle-income households.

Earlier this year, Prime Minister Datuk Seri Anwar Ibrahim did away with blanket diesel subsidies and, after several hints, has now given a timeline to do the same with RON95 petrol that is used by the majority of Malaysians.

Fuel subsidies rationalisation aside, Malay Mail takes a look at some of the existing government subsidies that are still ongoing based on information obtained from federal government ministries and annual fiscal outlooks.

A man walk pass the cooking oil section during a survey here in a supermarket in Kuala Langat October 3, 2024. — Picture by Sayuti Zainudin
A man walk pass the cooking oil section during a survey here in a supermarket in Kuala Langat October 3, 2024. — Picture by Sayuti Zainudin

Controlled Goods

  • Liquified Petroleum Gas
  • Cooking oil
  • General purpose flour

A general view of the chicken eggs at NSK Selayang Baru June 18, 2024. — Picture by Hari Anggara
A general view of the chicken eggs at NSK Selayang Baru June 18, 2024. — Picture by Hari Anggara

Consumables

  • Chicken eggs
  • Sugar
  • Paddy (Padi Price Subsidy Scheme, fertilisers and seeds)

Utilities

  • Electricity
  • Water

Fuel

  • Petroleum (RON95)
  • Diesel

Education

  • Textbooks (Textbook Loan Scheme or SPBT)
  • Tuition fees (public higher learning institutes)

A child is seen getting their Covid-19 vaccination at the Kemas Kindergarten Parliament Parit in Perak February 28, 2022. — Picture by Farhan Najib
A child is seen getting their Covid-19 vaccination at the Kemas Kindergarten Parliament Parit in Perak February 28, 2022. — Picture by Farhan Najib

Healthcare

  • Public health facilities (treatment and consultations)
  • Medications (essential medicines for chronic diseases)
  • Vaccinations (National Immunisation Programme — 13 major childhood infections)
  • Cancer screenings (mammogram and cervical)

Public Infrastructure and Transportation

  • Rail (Keretapi Tanah Melayu Bhd and travel passes)
  • Rural air service (operating and aircraft leasing)
  • Domestic airfares (FLYsiswa and festive period)
  • Highway tolls (discounts and rate increase delay)

A KTM Intercity Train is seen at the Padang Jawa KTM Station September 29, 2024. — Picture by Sayuti Zainudin
A KTM Intercity Train is seen at the Padang Jawa KTM Station September 29, 2024. — Picture by Sayuti Zainudin