Welfare aid spending spikes to over RM20 billion while overall subsidies plunge

The Auditor General’s Report 2/2026, tabled in the Dewan Rakyat, shows government welfare outlays surged to over RM20 billion in 2025, a dramatic rise from the previous year’s roughly RM4 billion. The jump reflects cash assistance through Sumbangan Asas Rahmah, Sumbangan Tunai Rahmah and the Budi Madani scheme, which together accounted for more than RM15 billion. Conversely, total subsidy spending fell by about 40 % as petroleum product subsidies were reduced by nearly RM16 billion, driven by lower global crude prices and the rollout of targeted diesel and petrol subsidy reforms.

Toll-compensation subsidies increased by around one-fifth, covering payments to highway concessionaires after toll rate deferments. Food and supplement subsidies rose marginally, with the Cooking Oil Price Stabilisation Scheme remaining a major component. The report comprises fifteen documents covering government finances and activities.