Anwar Ibrahim, the prime minister of Malaysia, has announced a package of measures designed to lower the cost of living, including a 100 ringgit ($24) cash handout for all adult citizens.
Anwar stated in a televised address on Wednesday that the assistance would benefit 22 million Malaysians and be redeemable across more than 4, 000 stores starting August 31 through December 31.
Anwar outlined the government’s plans to freeze planned increases toll rates on 10 highways, as well as lower the cost of subsidised gasoline from 2.05 ringgit per liter (2. 6 gallons) to 1.99 ringgit per liter for citizens.
According to Anwar, an additional public holiday will be held on September 15th this year in line with Malaysia Day, the nation’s holiday-celebration day.
According to Yeah Kim Leng, an economics professor at Sunway University in Kuala Lumpur, “Malaysian households, especially those in the low and middle-income groups, will welcome the cost-of-living relief provided by the measures.”
Oversea-Chinese Banking Corp.’s senior economist, Lavanya Venkateswaran, said the measures are in line with the government’s plan to promote growth, which is projected to slow from a quarterlyized 4.4% in the first half of 2025 to 3.5% in the second half.
According to Venkateswaran, the fiscal package announced today, combined with the central banks’ 25bps rate cut earlier in July, suggests that the authorities are intensifying anti-cyclical policies.
Venkateswaran claimed that the cash donations would “at the margin” and have a comparatively nominal cost of 0% of the GDP.
Anwar’s resignation is a subject of a planned rally in Kuala Lumpur days before his resignation due to rising living costs and alleged failure to implement reforms.
Source: Aljazeera
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