PM’s Announcement Timely, Provides Relief Amid Rising Cost Of Living Pressures - Experts

By Sakini Mohd Said & Yasmin Ahmad Zukiman

KUALA LUMPUR, July 23 (Bernama) -- The much-awaited announcement by Prime Minister Datuk Seri Anwar Ibrahim, made in appreciation of all Malaysians, was finally unveiled today, offering a ray of hope and underscoring the government’s continued concern for the people’s well-being.

Experts contacted by Bernama described the Prime Minister’s announcement as timely, highlighting the government’s commitment to building a fairer and more prosperous future for the people.

They viewed it as a clear reflection of the government’s concern over the public’s struggles with the rising cost of living, as well as a step towards restoring confidence and stability in the national economy during these challenging times.

Universiti Malaya sociopolitical analyst Datuk Professor Dr Awang Azman Awang Pawi said several of the measures introduced by Anwar brought significant benefits to the people, particularly in alleviating the burden of the rising cost of living.

He said the announcement came amid mounting challenges, including food inflation, soaring house prices, burdensome loan interest rates and global economic uncertainty.

“Any government initiative that helps ease the people’s burden should be welcomed. This announcement comes at a critical time, as many are caught in a cycle of household debt, employment uncertainty and a widening income gap,” he told Bernama.

Earlier today, Anwar announced several key initiatives as a gesture of appreciation to the people, including a one-off RM100 aid under the Sumbangan Asas Rahmah (SARA) programme, a freeze on toll hikes for 10 highways, and a targeted subsidy bringing RON95 fuel price down to RM1.99 per litre.

The Prime Minister also announced that there would be no increase in electricity bills for the majority of domestic consumers in Peninsular Malaysia following the restructuring of electricity tariffs that took effect this month.

In fact, he said 85 per cent of domestic users would see up to a 14 per cent reduction in their July 2025 bills for the same level of usage compared to the first half of this year.

Awang Azman said the one-off assistance was much needed as an interim measure while awaiting more structured and far-reaching government policies through the upcoming budget or the 13th Malaysia Plan (13MP).

He said that the initiative also demonstrated the prime minister’s concern for the people’s real needs.

“The next step is not just to provide temporary relief but is expected to be expanded through the upcoming budget and the 13MP, which will address root issues such as the wage-cost of living mismatch, the need for affordable housing, and the strengthening of the social safety net,” he said.

Awang Azman pointed out that attention needed to be given to transparency and efficiency in implementation to ensure the initiatives truly benefited the deserving groups.

“Effectiveness lies not only in the content but also in how the initiatives are implemented. Is the monitoring mechanism transparent enough to prevent leakages? The real challenge for the MADANI government is to implement this policy with integrity and efficiency so that it truly serves the people at the grassroots level,” he added.

Meanwhile, director of the MBA & DBA Programme at Putra Business School Prof Dr Ahmed Razman Abdul Latiff said the government had shown attentiveness to the people’s concerns by announcing immediate aid without waiting for the 2026 Budget.

“The assistance is provided immediately to individuals and those in need without waiting for next year’s budget to be tabled. Although inflation is low, the reality is that many still require direct aid,” he said.

Rejecting views suggesting the announcement was purely populist, Ahmed Razman said the cash assistance also extended to those in the M40 group, who were often mistakenly perceived as sidelined in aid distribution.

Political analyst Prof Datuk Dr Sivamurugan Pandian viewed the good news announced by the prime minister as a continuation of various incentives and assistance introduced by the MADANI Government to ensure the people continued to receive direct and ongoing benefits.

“I believe this is not the end. There will be several more phases rolled out later, depending on the government’s position and capabilities at that time,” said the sociology of political society lecturer at Universiti Sains Malaysia.

While some regarded the announcement as a temporary measure, he said it nevertheless had a significant impact amid rising cost of living pressures.

Citing the announcement that RON95 would be priced at RM1.99 per litre once the targeted subsidy takes effect, Sivamurugan said it demonstrated that the Prime Minister had delivered on one of his promises.

“If we look at the Prime Minister’s social media branding prior to the announcement, it clearly hinted at the petrol price that the public had been eagerly awaiting.

“It might seem like a small decrease but it has a big impact because he is fulfilling a promise the people have been waiting for,” he said.

Sivamurugan said the government’s ability to meet the people’s immediate needs while maintaining sound fiscal management showed an inclusive approach prioritising public well-being without undermining the country’s financial position.

--BERNAMA