PUTRAJAYA (Oct 19): The government remains capable of managing Malaysia’s economy and maintaining financial assistance for the public despite rising global crude oil prices and cost-of-living pressures, Prime Minister Datuk Seri Anwar Ibrahim said.

He said allocations for Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (Sara) had increased to RM15 billion, compared with only RM8 billion when he took office.

Anwar said Budget 2027 was formulated based on the country's economic position and the needs of its people, with the aim of ensuring that development benefits reached all segments of society.

“The budget is not unclear. The problem is that people do not read it. If they do, the figures and data are clear,” he said at the Finance Ministry's monthly assembly here on Monday.

Anwar said the government was still capable of managing rising global crude oil prices while maintaining fuel subsidies to ease the burden on Malaysians.

The prime minister said fuel subsidies were estimated to cost RM40 billion annually to keep RON95 petrol at RM1.99 per litre.

“Is this necessary? In my view, it is necessary to ease the people's burden,” he said.

However, Anwar stressed the need to continue targeting subsidies to reduce leakages and wastage, while ensuring assistance reached those who needed it most.

He acknowledged that subsidy rationalisation was among the most challenging economic measures, requiring political courage and a willingness to face public criticism.

On civil service remuneration, Anwar said the government had allocated an additional RM18 billion for salary increases following nearly 12 years without a pay rise.

He said the adjustment was intended to provide fairer remuneration while encouraging civil servants to improve service delivery, prevent leakages and reject corruption.

The government was also prioritising low-income earners and gig workers to ensure their needs were reflected in public spending.

Anwar stressed that government assistance should be seen as additional support for people's earnings rather than replace their wages or income.

He also highlighted the RM1,000 assistance for each taxi driver, funded through proceeds from new vehicle registration numbers.

He said the initiative demonstrated how government revenue could be channelled back to the public to address the challenges faced by taxi drivers.

Anwar said economic growth, increased investment and technological advancement must be accompanied by efforts to address low wages, high housing rents and rising prices of essential goods.

He also called for a more balanced distribution of development funds among states, particularly those with lower revenue but greater needs in poverty eradication, flood mitigation and basic infrastructure.

Such measures were essential to ensure that the benefits of economic growth were not concentrated in more developed states and regions, he added.

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