9th October 2026 - 3 min read
The government will spend more than RM80 billion on subsidies, aid, and incentives in 2027. Prime Minister Datuk Seri Anwar Ibrahim announced this when he tabled Budget 2027 in the Dewan Rakyat on 9 October.
Fuel subsidies make up the largest part, at an expected RM40 billion. That’s half of the RM80 billion (our calculation). It also includes almost RM3.3 billion for welfare aid. The budget also announced more cash aid, cheaper groceries, and help with electricity bills.
Anwar said fuel subsidies are expected to stay high next year, at RM40 billion. It didn’t announce any change to the subsidised prices. BUDI95 petrol is RM1.99 a litre and BUDI Diesel is RM2.10 a litre.
The monthly quota for BUDI95 went back up to 300 litres in September. Jeeps and pickups on BUDI Diesel get 400 litres. According to Anwar, only about 100,000 drivers, or less than 1%, used their full 300 litres in September. About 15,000 jeep and pickup owners used their full 400 litres.
Last month, the government raised the electricity bill protection level for homes from 600 kilowatt-hours (kWh) to 800 kWh a month. Anwar said this covers more than 8 million households, or up to 90% of homes.
Under the NUR MADANI programme, you can also get a rebate of up to RM200 when you buy an energy-efficient air conditioner or fridge. Hot weather pushes up how much electricity homes use, which is why the government is offering this rebate.
Cash aid through Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) goes up to RM16 billion next year, from RM15 billion. The Social Welfare Department (JKM) gets almost RM3.3 billion for its aid programmes, as part of the RM80 billion.
The budget for Jualan Rahmah MADANI and Jualan Agro MADANI goes up from RM630 million to RM750 million, with 35,000 sales planned. Jualan Agro MADANI sells fresh fish, chicken, vegetables, and fruit at up to 30% below normal prices. Another RM250 million will bring basic goods to rural and interior areas.
Most of this help no longer comes as a lower price for everyone. You get BUDI95 petrol at RM1.99 only when you pay with your MyKad, and only up to your monthly quota. SARA credit for groceries also goes into your MyKad.
Keep your MyKad details and STR information up to date, so you don’t miss out. You can check this week’s pump prices on our petrol price tracker. The STR payment guide shows how cash aid has been paid out this year.
As a creative content writer, Eloise has covered finance, business, lifestyle topics, and even moonlights as a singer-songwriter outside of RinggitPlus. Her current interests are learning the best ways to optimise spending and credit card hacks to gain more airline miles.
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