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Malaysia’s government has decided to end the special electricity subsidies for large businesses starting January next year. This change means that multinational companies and large-scale local corporations will no longer enjoy lower electricity rates. The decision is part of a broader effort to make subsidy distribution more targeted and efficient.

Prime Minister Anwar Ibrahim emphasized that the move aims to ensure subsidies reach those who truly need them, such as lower-income households and small businesses. He explained that the current blanket subsidy system benefits all groups equally, including those who can afford to pay more, which puts a strain on the country’s budget.

However, the government will still maintain electricity subsidies for domestic users, mainly low and middle-income families, to protect them from rising costs. This adjustment is expected to save billions in public spending and allow the government to reroute funds to more critical sectors like healthcare and education.

Additionally, the government plans to adopt a more targeted subsidy approach moving forward, identifying eligible groups more precisely. Anwar mentioned that this change is part of a greater national reform that includes fiscal restructuring and economic sustainability goals.

With this policy shift, Malaysia joins other nations in rolling back widespread subsidies that benefit high-income entities. Analysts believe that if implemented effectively, the change could strengthen Malaysia’s fiscal position and promote fairer resource distribution.

electricity subsidies, Malaysia, Anwar Ibrahim, energy reform, targeted assistance