The Ministry of Finance says subsidy reforms are targeted to avoid burdening the majority, with inflation trending down and controlled spending increases for B40 and M40 groups.

KUALA LUMPUR: The government’s subsidy restructuring is being implemented in a controlled and targeted manner to avoid burdening the majority of the population.

The Ministry of Finance said this approach allows assistance to be more accurately targeted, reduces leakages, and ensures fiscal resources are used more efficiently.

It stated the reforms have not triggered widespread price pressures from a macroeconomic perspective.

The inflation rate based on the Consumer Price Index shows a declining trend, from 2.5% in 2023 to 1.8% in 2024, and further to 1.4% in 2025.

The ministry was responding to a question in the Dewan Negara regarding the impact of subsidy restructuring on low and middle-income households.

Referring to the Household Income and Expenditure Survey 2024, it stated average monthly household spending for B40 and M40 groups showed a moderate increase between 2022 and 2024.

Observations for the transportation expenditure category show spending among the B40 group increased in a controlled manner from about RM311 to RM320 per month.

For the M40 group, transportation spending increased from around RM575 to RM606 per month during the same period.

 The Sun Malaysia