KUALA LUMPUR – Malaysian Prime Minister Anwar Ibrahim on Aug 30 introduced measures to address rising living costs and support businesses, including restoring higher quotas for subsidised petrol and diesel purchases, as well as more funding for schools and small traders.

The measures are expected to take effect on Sept 1, Anwar said in a televised address.

“The economic growth of the country must be returned to the people,” he said.

Anwar has been under pressure to tackle higher living costs, even as Malaysia’s economy has outperformed most of its regional peers. The country’s gross domestic product grew 6 per cent in the second quarter of 2026, surpassing official projections.

Anwar said the government would restore a quota for Malaysian citizens to buy the popular RON95 transport fuel to 300 litres per month, after reducing it to 200 litres a month earlier in 2026 amid a surge in global crude oil prices due to the US-Israeli war on Iran.

The quota for diesel purchases for certain categories of users would be similarly raised to 400 litres per month, he said.

Anwar said a government artificial intelligence program would be opened to Malaysians aged between 18 and 30 years that would include free access to several key applications including Google’s Gemini Enterprise and Wonderclip and MuleRun by China’s Alibaba Cloud.

He also unveiled increased funding for maintaining schools, improving digital health systems and micro-financing facilities for small businesses. He said the government would raise the revenue threshold exempting companies from implementing e-invoicing to RM3 million (S$935,000) a year.

Any funds seized or forfeited from anti-corruption legal proceedings would be channelled to government programs, particularly in education and healthcare, he added.

Anwar’s coalition has faced declining support over what critics have described as a failure to deliver on promised reforms and the mishandling of several high-profile corruption cases. The coalition has been defeated in three successive regional elections in recent months.

The state elections are widely seen as an indicator of voter sentiment ahead of a general election that must be held by early 2028. Anwar has said he may call for snap polls if divisions within his administration continue to widen.