Budget 2027: KPDN wants subsidies, cash assistance continued - Armizan

BATU KAWAN, Sept 19: Ministry of Internal Trade and Cost of Living (KPDN) hopes the government can continue utility subsidies as well as social assistance to the people in Budget 2027.

His Excellency, Datuk Armizan Mohd Ali said the matter was among the request of the ministry to the Ministry of Finance (MOF), particularly in the face of the challenges of rising world oil prices and cost-of-living pressures following the geopolitical crisis in Western Asia.

He said among the issues of concern were fuel subsidies through Subsidized Diesel Control System (SKDS), cooking oil subsidies and price diversification programs in Sabah and Sarawak.

"The most important thing for us right now in such a challenging situation, our request to the MOF is that we can sustain utility subsidies, cash and social assistance subsidies.

"We ask the government to defend basic issues, as Prime Minister Datuk Seri Anwar Ibrahim has also mentioned that among the most important components of Budget 2027 is regarding the cost of living", he said.

He said this to reporters at a press conference before completing the inaugural ceremony of Jom Malaysia Festival at Negeri Stadium here, today.

Meanwhile, Armizan said that despite the increase in subsidies spending, the government's reform of subsidy feeding allowed aid to the people to continue.

He said the KPDN also hopes that cash assistance such as Sundan Tunai Rahmah (STR) and Sundan Asas Rahmah (SARA) can continue.

According to him, the pressure on government fiscal space is currently among the main challenges in preparing Budget 2027, followed by increasing fuel subsidies.

"In Budget 2026, the actual allocation for fuel subsidies is only RM15 billion, but now almost reaches RM40 billion of fiscal space to be used for fuel subsidies.

"The increase almost tripled. So, that's among the challenges", he said.

He said the implementation of subsidies would allow the government to maintain fuel base quotas at lower prices for the people, despite the volatility in world oil prices.

He said the same approach also allowed for the cooking oil subsidy package to be maintained even though crude palm oil (CPO) prices are now at high levels. - TVS