Economy minister: Govt maintains RM300 diesel aid, adds RM100 interim assistance as global fuel prices rise

“KUALA LUMPUR, May 19 — The government will maintain the RM300 monthly BUDI MADANI Diesel cash assistance while introducing an additional interim RM100 aid payment for eligible recipients amid rising global fuel prices and growing supply chain uncertainty. Economy Minister Akmal Nasrullah Mohd Nasir said the measures were part of Putrajaya’s targeted intervention strategy to shield lower-income groups and vulnerable sectors from the effects of the ongoing global supply crisis. Announcing the decision after today’s National Economic Action Council (MTEN) meeting, Akmal Nasrullah said the government remained focused on ensuring the rakyat were not left to bear rising costs alone. “The government will continue to implement its targeted interventions so that the public will not be affected without the required support,” he said. He said the continuation of the diesel aid and the additional RM100 interim assistance were aimed at easing cost-of-living pressures linked to volatile global energy markets and higher transportation costs. Akmal Nasrullah said Malaysia’s economy continued to show resilience despite increasingly uncertain global conditions, with the country recording a stronger-than-expected 5.4 per cent GDP growth in the first quarter of 2026. He said the growth was supported by resilient domestic demand, strong manufacturing and services sectors, rising private investments and continued foreign tourist arrivals. The minister noted that Malaysia’s economic performance outpaced several regional economies, including Singapore and the Philippines, although it remained behind Vietnam and Indonesia. He added that the labour market remained stable, with unemployment holding at 2.9 per cent, indicating continued strength in domestic economic fundamentals. However, Akmal Nasrullah cautioned that the effects of the global supply crisis were expected to become more pronounced by the third quarter of the year, particularly on prices, industrial operating costs and employment. He said Brent crude oil prices had risen moderately in recent weeks amid geopolitical uncertainty and concerns over global energy supply stability. At the same time, inflation increased to 1.9 per cent in April from 1.7 per cent in March, driven largely by transportation costs following higher diesel and RON97 fuel prices. Akmal Nasrullah said the government was also taking steps to protect food security and agricultural supply chains, including the disbursement of the RM300 per hectare Ploughing Incentive for Farmers beginning today. He said MTEN had also reviewed proposals to improve the Subsidised Diesel Control System (SKDS), including possible adjustments to diesel subsidy quotas aimed at reducing leakages without disrupting businesses or supply chains. According to government data, more than 398,000 vehicles had registered under the SKDS programme as of April 9, involving over 375,500 goods transport vehicles and around 23,000 public transport vehicles. Akmal Nasrullah said the government was also strengthening support for small and medium enterprises (SMEs), particularly those facing prolonged cost pressures from the global energy and supply situation. Among the measures announced was Bank Negara Malaysia’s RM5 billion SME Stabilisation Relief Facility to help affected SMEs maintain cash flow and operational continuity. “The government’s approach is not reactive,” he said. “We are taking action after weeks of monitoring, recalibration and cooperation across ministries and close checks to ensure each decision translates into implementation,” he added.

Summary generated from the RSS feed of Malay Mail Education. All article rights belong to the original publisher. Click through to read the full piece on www.malaymail.com/news/malaysia.