On July 23, 2025, Prime Minister Datuk Seri Anwar Ibrahim unveiled a significant initiative aimed at alleviating the financial burdens faced by Malaysians. In a live broadcast, he announced a series of measures under the expanded Sumbangan Asas Rahmah (SARA) programme, marking a historic step in the government’s commitment to its citizens.
Among the most anticipated announcements is the reduction of RON95 petrol prices to RM1.99 per litre, postponement of toll hikes on ten major highways, and one-off cash aid of RM100 will be distributed to all adult Malaysians, providing immediate financial relief to approximately 22 million citizens.
These initiatives are part of a broader strategy to stimulate economic growth, reduce poverty, and enhance the quality of life for Malaysians. With a projected GDP growth of 4.5% in the second quarter of 2025 and a significant rise in global competitiveness rankings, the government’s policies aim to foster a prosperous and inclusive future for the nation.
1. One-Off RM100 Cash Aid for All Adults (SARA for all)
In conjunction with National Day on August 31, every Malaysian aged 18 and above will receive a one-off RM100 credit via their MyKad. This assistance can be used from August 31 to December 31, 2025, at over 4,100 participating outlets nationwide, including major supermarkets such as Mydin, Lotus’s, Econsave, and 99Speedmart. The initiative is expected to benefit approximately 22 million individuals, with a total allocation of RM2 billion. This marks the first time in history that cash aid is being extended to all adult citizens.
2. Additional Public Holiday Announcement on September 15, 2025
To commemorate the formation of Malaysia, September 15, 2025, has been declared a national public holiday. Prime Minister Anwar emphasised that this holiday is to appreciate the unity and uniqueness of Malaysia’s formation and to encourage family bonding and domestic tourism.
3. Postponement of Toll Hike for 10 Highways Scheduled Based on Agreement
In a significant move to reduce the financial burden on Malaysians, Prime Minister Datuk Seri Anwar Ibrahim announced the postponement of toll rate increases for 10 major highways that were scheduled to take effect this year. These toll hikes were part of long-standing concession agreements signed by previous administrations. The government has decided to uphold the current toll rates, absorbing the financial impact to ensure that the public continues to benefit from stable transportation costs.
The affected highways include:
- Senai-Desaru Expressway (SDE)
- East Coast Expressway Phase 2 (LPT2)
- South Klang Valley Expressway (SKVE)
- Butterworth Outer Ring Road (LLB)
- KL-Putrajaya Expressway (MEX)
- Cheras-Kajang Highway (Grand Saga)
- KL-Kuala Selangor Highway (LATAR)
- New North Klang Straits Bypass (NNKSB)
- Sultan Abdul Halim Mu’adzam Shah Bridge (JSAHMS)
- Duta-Ulu Kelang Expressway (DUKE)
This decision is expected to benefit approximately 941,000 daily commuters, particularly those travelling between home and work. To facilitate this, the government will compensate the affected concessionaires with over RM500 million through the Ministry of Finance, ensuring that the toll rates remain unchanged and that the operational costs of these highways are covered.
Prime Minister Anwar emphasised that this step reflects the government’s deep understanding of the cost-of-living pressures currently faced by the people. By postponing the toll hikes, the government aims to ease the financial burden on highway users and demonstrate its commitment to supporting the rakyat during challenging times.
4. Subsidy Rationalisation: Reduction of RON95 Petrol Price
In a significant move to ease the financial burden on Malaysians, Prime Minister Datuk Seri Anwar Ibrahim announced that the price of RON95 petrol will be reduced to RM1.99 per litre for eligible citizens. This reduction is part of the government’s targeted subsidy initiative aimed at ensuring that subsidies are directed more efficiently to those who truly need them.
Currently, the retail price of RON95 petrol stands at RM2.05 per litre, a ceiling price maintained since February 2021. Under the new scheme, which is expected to be implemented before the end of September 2025, eligible Malaysians, including car owners, motorcyclists, gig economy workers, and youths aged 16 and above, will benefit from the reduced price. The verification process will utilise the MyKad system to confirm eligibility.
This targeted approach is anticipated to benefit approximately 18 million Malaysians, aligning with the government’s broader efforts to optimise national resources and reduce subsidy wastage.
5. Doubling of Rahmah Sales Funding
Image Credit: BUDGET 2025 | Allocation up from RM13 billion from RM10 billion, benefiting nine million people.
The Rahmah MADANI sales programme’s budget has been doubled from RM300 million initially to RM600 million for budget 2025. This expansion will enable broader nationwide coverage, including all 600 state constituencies, and a wider selection of discounted goods, making essential items more affordable for the public.
6. Assurance of Lower Electricity Bills for Most Households
Despite recent tariff restructuring by TNB (Tenaga Nasional Berhad), the government assures that 85% of domestic users will see reduced electricity bills in July 2025 compared to the first half of the year, with reductions of up to 14%. This initiative aims to alleviate concerns over increased living costs.
On July 1, 2025, Tenaga Nasional Berhad (TNB) implemented a comprehensive restructuring of electricity tariffs in Peninsular Malaysia, marking a significant shift in the nation’s energy pricing model. This overhaul introduces a more transparent and flexible system designed to promote energy efficiency and align with the National Energy Transition Roadmap (NETR).
Conclusion: Prime Minister Anwar Ibrahim’s Vision for a Prosperous and Unified Malaysia (MADANI) 2025
Prime Minister Anwar Ibrahim’s recent announcement underscores the government’s proactive and compassionate approach in tackling the financial challenges facing Malaysians. By introducing a series of strategic initiatives, the government not only aims to provide immediate financial relief but also seeks to create a more inclusive, resilient economy.
These measures, which include direct financial aid, subsidies, and cost-of-living adjustments, are designed to ease the everyday burdens of citizens while reinforcing national unity. As Malaysia navigates these challenging times, the government’s focus on long-term economic stability, community empowerment, and targeted support highlights a clear commitment to ensuring the well-being of all its people.
Through these efforts, the government strives to build a more prosperous future, ensuring that every Malaysian feels valued and supported.
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