KUALA LUMPUR, Oct 13 — Prime Minister Datuk Seri Anwar Ibrahim today stressed that the government introduced targeted subsidies to stamp out cartels and rampant corrupt practices, rather than to penalise the rich.
Speaking to student delegates, Anwar said the Budget 2026 reflects a strategic rethinking on the government’s part to explore other alternatives for revenue instead of levying higher taxes.
“In the past, the governments used to impose higher tax to get revenue for spending.
“But, there is still corruption, smuggling and cartels involving big and powerful people who have squandered billions.
“The government has to take them back to spend on education and our young people.
“(Through targeted subsidies), we are not penalising the rich. We are only telling them to pay the market rate,” Anwar said at the International Young Future Leaders Summit 2025 at the World Trade Centre Kuala Lumpur, here, today.
He also stated that the RM15.5 billion in government revenue recovered after dismantling cartel activities will be directed towards providing free education for the poor.
While tabling Budget 2026 on October 10, Anwar announced a RM120 million allocation to provide free education through the National Higher Education Fund Corporation (PTPTN) to 5,800 students from low-income households.
The prime minister spent nearly an hour answering questions from student delegates at the summit, covering topics ranging from regional identity to advancements in artificial intelligence (AI).
He emphasised the need for countries like Malaysia to produce young professionals who strongly uphold their religious and moral values while keeping pace with global advancements in AI.
“While we absorb strong technology advancement from China, US and Europe, our challenge is to prepare ourselves so that AI serves us from human perspective, not a Western perspective,” he said.
In another development, Anwar, who is currently serving as Asean Chair, said officials from Cambodia and Thailand held negotiations in Malaysia yesterday aimed at easing their ongoing border tensions.
Anwar had previously brokered a ceasefire agreement between the two countries in July, following a border clash between Thai and Cambodian troops that escalated into their most violent conflict in over a decade.
He also shared that he will be communicating with Egyptian President Abdel Fattah el-Sisi to facilitate the passage of a Malaysian humanitarian aid contingent into Gaza through the Rafah crossing.
