Policy Tracker

Fuel and electricity subsidy retargeting

A phased shift from blanket fuel and electricity subsidies to targeted household transfers, using the consolidated income database as the eligibility spine.

Current status

Consultation

Full rollout by Q3 2027

Progress

AnnouncedConsultationApprovedImplementationCompleted

Executive summary

A phased shift from blanket fuel and electricity subsidies to targeted household transfers, using the consolidated income database as the eligibility spine.

Objectives

01Reduce blanket subsidy expenditure by RM 12b over three fiscal years
02Protect the bottom 60% of households from net income loss
03Establish a single, auditable eligibility record across federal transfers

Implementation timeline

Mar 2026
Cabinet announcement
May 2026
Public consultation opens
Sep 2026
Cabinet approval sought
Jan 2027
Phase one implementation

Policy record

Responsible ministry: Ministry of Finance
Status: Consultation
Budget allocation: RM 4.8b transition fund
Announced: 14 March 2026
Target: Full rollout by Q3 2027

Ministry profile

Stakeholders

Ministry of Finance
Economy Ministry
Implementation Coordination Unit
State governments
Consumer associations