On November 25, 2020, Malaysia's prime minister Anwar Ibrahim center left Putra Mosque after prayers in Putrajaya. Prime Minister Anwar Ibrahim said that Malaysia is reviewing its government subsidies program, aimed at directing money towards low-income groups, and prioritizing the rising cost of living as he takes office at a time of slowing growth.
He told a news conference that the government agencies have two weeks to review the implications of narrowing the subsidies.
Malaysia offers subsidies to all citizens, with fuel and cooking oil accounting for the biggest expense. It subsidizes electricity, sugar and flour.
Anwar, who emerged as leader of Southeast Asia's nation after a long fought election last week, said that subsidies must be targeted because they are not only enjoyed by the low income group but also the wealthy.
He said that other incentives will be considered for industries that no longer benefit from subsidies.
Anwar is following the previous administration's position last month, which proposed a smaller budget, cutting subsidies due to rising commodities costs and the impact on government coffers. This year, Malaysia is estimated to spend 77.7 billion ringgit $17.4 billion on subsidies.
Anwar will be talking about cabinet appointments with his coalition partners in the next few days.
The 75-year-old was sworn in on Thursday, capping a three-decade political journey from the protege of veteran leader Mahathir Mohamad to protest leader, prisoner convicted of sodomy and opposition figurehead.
Investors were hoping Anwar would bring stability after political uncertainty that saw three prime ministers in as many years.
The focus is on the new government's policy direction and cabinet appointments. Anwar said on Friday that he would have a smaller cabinet than those of previous administrations.