Malaysia expands targeted subsidies and Jualan Rahmah to buffer external economic shocks

Malaysia's government is rolling out targeted subsidies and keeping essential items cheap through the Jualan Rahmah scheme to shield citizens from external economic pressures. Nurhisham Hussein, an adviser to the Prime Minister’s Office, highlighted that the nation's fuel supply is backed by Petronas, local refineries, and its own oil and gas reserves. He told RTM's BizMalaysia programme that good diplomatic ties enable the purchase of needed resources.

When asked about the focus of Budget 2027, he emphasized the need for flexibility to address unexpected developments. Lessons from past crises, he noted, underscore the importance of tackling supply shocks and rising costs. He also pointed to prudent fiscal policies over the past three to four years that have built fiscal space for crisis response.