Anwar S Tribute Pre Election Relief Or Long Term Reform

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Prime Minister Anwar Ibrahim’s latest address, “Ucapan Penghargaan untuk Rakyat” (Speech in Appreciation of the People), outlines a RM15 billion cost-of-living package in what is framed as a gesture of gratitude to the Malaysian public.
The announcement includes an RM100 cash aid for every adult citizen, toll hike deferrals, expanded Rahmah Madani Sales, and rationalisation of fuel subsidies.
While these measures offer immediate relief to households, the timing and structure of the package raise serious questions: Is this a meaningful step toward structural reform, or a politically timed pre-election buffer?
With the 16th general election looming in the next two years, these questions are more urgent than ever.
ADSThe government has generated a significant portion of its increased revenue through the sales and service tax (SST), which was raised from six percent to eight percent this year.
The SST hike is expected to generate RM4–5 billion annually, but it is clear that a large portion of this windfall is now being channelled into one-off disbursements.
RM2.2 billion alone has been earmarked for the RM100 Rahmah Necessities Aid, which is universal and not means-tested. While this may provide short-term relief for B40 households, for other income groups, it is symbolic.
For the government, this is a significant expenditure with limited economic return. RM100 may cover a few days’ worth of groceries or fuel, but it does not significantly impact long-term affordability or household resilience.
More critically, the universal nature of this handout means even high-income earners will benefit, raising concerns about inefficiency and poor targeting.
Significant financial burden
Similarly, the government’s decision to postpone toll hikes, expected to cost RM500 million, offers short-term public relief but imposes a significant financial burden on public coffers.
Past deferments have cost the government upwards of RM2 billion in compensation to concessionaires. These stopgap measures do not address the underlying inefficiencies in concession agreements, and instead kick the problem further down the road.
Without structural renegotiation, the cost of these populist gestures will continue to mount.
One of the most potentially impactful measures, the rationalisation of RON95 petrol subsidies, remains in limbo.
While the government promises targeted subsidies to reduce leakage to the wealthy and non-citizens, implementation has been continuously delayed, and precise operational details are nonexistent.
If executed well, this policy could save up to RM5 billion annually. But without careful targeting and political will, it risks public backlash and policy retreat.
ADSThe expanded Rahmah Madani Sales and grassroots economic initiatives, including Kampung Angkat Madani and Sejati Madani, are commendable in intent. However, their scale, RM600 million in added funds, also demands transparency in execution.
Without proper data on procurement, targeting, and impact measurement, these programmes may suffer from duplication, patronage, or inefficiency.
Viewed collectively, this package suggests a pattern of short-term consumption rather than long-term reform. It is also unclear how these disbursements will be sustained after the election.
With the SST already increased and fuel subsidy reform still untested, the government may have limited fiscal room by 2026. Future administrations, regardless of coalition, will inherit higher expectations for cash aid, even as budgetary space becomes increasingly narrow.
If left unchecked, this trajectory risks entrenching populism while crowding out structural investments in healthcare, housing, food security, or youth employment.
Targeted income support
Malaysians are paying more in indirect taxes, and they deserve more than symbolic returns. The government must move decisively from one-off generosity to long-term governance.
That means focusing on targeted income support, structural subsidy reform, transparent impact evaluation, and credible fiscal planning. Political gratitude is not a substitute for public accountability.
This moment could be remembered either as the foundation of a new social contract or as a politically expedient pause before the campaign trail resumes.
The rakyat deserves to know which path this government intends to take. Not just before GE16, but beyond it. - Mkini
IMAN RESEARCH is a think tank which focuses on the domains of protective security, peacebuilding and sustainable development.
The views expressed here are those of the author/contributor and do not necessarily represent the views of MMKtT.

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