25th July 2025 - 2 min read
Middle-income Malaysians in the M40 group are expected to benefit from upcoming government initiatives involving fuel prices and toll charges. Prime Minister Datuk Seri Anwar Ibrahim said these efforts are part of a phased strategy that began with the hardcore poor, expanded to the B40 group, and is now extending to the M40.
In his “Appreciation Announcement for Malaysians” speech on Wednesday, the government has decided to freeze toll rate hikes for ten major expressways. This means that road users will continue paying the current rates without any increase for now. Among the highways affected are the Senai-Desaru Expressway, East Coast Expressway 2, South Klang Valley Expressway, Butterworth Outer Ring Road and the KL-Putrajaya Expressway (MEX).
Fuel prices for RON95 petrol are also expected to drop slightly under a targeted subsidy scheme. Most Malaysian motorists will pay RM1.99 per litre, compared to the current subsidised price of RM2.05. The new system aims to focus fuel subsidies on eligible citizens, while removing access for foreign nationals.
Alongside support for the M40, the government is continuing assistance programmes for low-income households. Under the Sumbangan Asas Rahmah (SARA) scheme, eligible Malaysians receive RM100 to help cover the cost of essential goods.
Anwar noted that while this amount may seem minor to high-income earners, it can make a significant difference in rural or low-income communities. A household with four eligible adults could receive RM400 in SARA aid. When combined with Sumbangan Tunai Rahmah, the total support could reach RM700, depending on eligibility.
Responding to criticism of the new fuel subsidy model, Anwar clarified that the removal of subsidies for foreign nationals is in line with international norms. He pointed out that fuel prices in Singapore, Thailand and Indonesia are already above RM2.50 per litre.
He stressed that public subsidies should benefit Malaysian citizens and not be used by non-citizens, especially when these resources are drawn from national funds.
The targeted fuel subsidy is scheduled to begin in September 2025, subject to implementation procedures. Until then, the toll rate freeze and existing aid programmes will remain in place as part of the government’s broader cost-of-living strategy.
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Samuel writes about personal finance and financial news, focusing on how banking updates, policies, and promotions affect everyday money decisions. He enjoys making complicated financial topics easier to follow. Outside of writing, he spends his time watching TV shows and occasionally convincing himself he will only watch one episode.
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