KUALA LUMPUR, Oct 12 — The annual savings of RM15.5 billion resulting from the targeted subsidy measures announced under the Budget 2026 clearly reflect the government’s strong commitment to realising the nation’s economic empowerment agenda, in line with the goals outlined in the 13th Malaysia Plan (13MP).
Universiti Putra Malaysia (UPM) Putra Business School (PBS) MBA programme director, Prof Dr Ahmed Razman Abdul Latiff, said the initiative will benefit the entire population, not only the B40 group but also the M40 and higher-income groups, through various forms of targeted subsidy assistance.
“This targeted subsidy approach is expected to help the government save funds and ensure that every ringgit of revenue is channelled directly to the people,” he said.
“This is because, in the past, although the country’s revenue had increased, part of it went into the wrong hands due to leakages, wastage and corruption,” he told Bernama.
Ahmed Razman added that the introduction of targeted subsidies will enable the government to avoid increasing existing tax rates or introducing new taxes to boost national revenue.
“This is a positive move as it prevents the people from being burdened with additional taxes, while allowing them to benefit from the savings generated through the subsidy rationalisation initiative,” he said.
On Friday, Prime Minister Datuk Seri Anwar Ibrahim, when tabling Budget 2026, themed Belanjawan Madani Keempat: Belanjawan Rakyat (Fourth Madani Budget: A Budget for the People), in the Dewan Rakyat, said that comprehensive subsidy targeting is expected to save the country approximately RM15.5 billion annually.
Anwar, who is also the Finance Minister, said the savings will enable the government to allocate more funds towards welfare programmes, cost-of-living support, and quality infrastructure investments for the benefit of the people.
Meanwhile, Agrobank group president and chief executive officer Datuk Tengku Ahmad Badli Shah Raja Hussin said Budget 2026 has allocated RM1.1 billion to Agrobank to support agropreneurs in expanding their operations, as well as to promote automation and mechanisation in the agriculture sector.
“This substantial funding will not only empower industry players but also boost productivity and strengthen the agricultural sector as a key pillar of national food security,” he said in a statement.
He added that Agrobank remains committed to partnering with the government to advance this critical sector, emphasising that its mission extends beyond merely providing financing.
“We are dedicated to supporting livelihoods and building sustainable futures. Budget 2026 represents more than figures; it embodies hope and opportunity for farming communities throughout the agro-food sector,” he said. — Bernama
