logo
Uplifting Living Standards in Malaysia: A Multifaceted Approach Under Anwar Ibrahim's Government

Uplifting Living Standards in Malaysia: A Multifaceted Approach Under Anwar Ibrahim's Government

IN Malaysia today, under Prime Minister Datuk Seri Anwar Ibrahim's leadership, something intriguing is unfolding.
The government is attempting a high-wire act: balancing the urgent need to lift living standards amid rising costs and global economic turbulence, while laying down the scaffolding for a more resilient, inclusive economy.
And it's doing this not with flashy stimulus checks or slogans, but through a blend of fiscal realism and strategic reform.
If you zoom in on the 2025 Budget, you'll notice a quiet but significant pivot in how Malaysia supports its people.
The government has allocated RM13 billion - the largest direct cash aid allocation in national history - to programmes like Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA).
These are not mere handouts; they're micro-targeted relief channels reaching nine million citizens, or about 60 per cent of the adult population. The idea is simple: soften the blows of inflation, especially on food and fuel, and inject purchasing power into the base of the economy.
At the same time, the minimum wage has been raised to RM1,700 per month (effective February 2025), signaling that labor dignity still matters in this algorithmic age.
But Anwar's team knows that Band-Aids won't fix structural wounds. Rather than launching a headline-grabbing stimulus package, the administration is pushing forward with what could be described as an "invisible stimulus" - a layered reform agenda that targets fuel subsidies, tax structures, and long-term investments.
Malaysia is now rolling back blanketsubsidies for RON95 petrol and diesel, replacing them with targeted assistance.
It's politically risky - no one likes to pay more at the pump - but it's the kind of reform that says: the days of fiscal leakage are over.
Meanwhile, high- income earners are now subject to a two per cent tax on dividend income above RM100,000, and the Sales and Services Tax has been expanded to new sectors.
These are moves aimed at rebuilding state revenue without triggering austerity.
The government is also playing the long game. Billions are being committed to infrastructure, education, and health, not just as social investments, but as tools for growth.
A prime example is the Johor-Singapore Special Economic Zone, engineered to attract foreign investors and create a new class of skilled jobs.
Meanwhile, RM40 billion in credit facilities and loan guarantees are being mobilised to support SMEs, a critical step to ensure the middle class and entrepreneurial base aren't left behind in a two-speed economy.
Global institutions are taking note.
In its April 2025 Malaysia Economic Monitor, the World Bank projects GDP growth at 3.9 per cent for 2025, slightly lower than earlier estimates due to global economic headwinds.
But more importantly, it urges Malaysia to focus on inclusive growth through higher social spending, education, and place-sensitive policies that address regional inequality.
Similarly, the IMF's 2025 Article IV Consultation Report pegs growth at 4.1 per cent and calls for Malaysia to take advantage of improved macroeconomic conditions to rebuild buffers, enhance policy credibility, and accelerate structural reforms.
Both institutions commend Malaysia's fiscal strategy while sounding a common theme: now is not the time to blink.
Of course, none of this will be easy. Anwar's coalition government walks a political tightrope, and subsidy rationalisation is a dangerous game in a populist age. The cost of miscommunication or delay could be steep.
But if Malaysia can hold this course if it canmanage the optics while maintaining the discipline - it could emerge not just as a recovering economy, but as a case study in how a middle-income country transitions through turbulence with its dignity, cohesion, and competitiveness intact.
In a world addicted to short-term fixes, Malaysia is attempting something harder: think long-term, act incrementally, and bet on its own maturity. In this era of geopolitical fragmentation and economic anxiety, that's not just commendable—it's strategic.
*The writer is an international relations analyst and economic commentator. A former senior researcher at the Malaysian Institute of Economic Research, he has written extensively for numerous regional outlets. Currently he is a senior consultant with Global Asia Consulting and an adjunct lecturer at Universiti Teknologi Petronas.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Asean News Headlines at 10pm on Wednesday (June 11, 2025)
Asean News Headlines at 10pm on Wednesday (June 11, 2025)

The Star

timean hour ago

  • The Star

Asean News Headlines at 10pm on Wednesday (June 11, 2025)

Malaysia * Vertical schools in housing projects to help reduce transport costs, says PM Anwar * Gerik bus crash: School to prepare report on teacher's offensive remarks on students' deaths, says state govt * Gerik bus crash: Tourism ministry calls for return of regulatory power over sector's transportation * Your vaccine from 2021 is not enough: Expert says Covid-19's threat remains * Companies subject to new SST if they reach RM500,000 revenue threshold within 12 months, says Finance Ministry * Influencer raises alarm over FB group circulating photos of underage students * Sabah woman sues KJ, govt over what she claims is wrongful Covid-19 enforcement * Three people lose over RM80,000 to lucky draw scam * Student who used hot iron on sleeping dorm mates sent to Henry Gurney School * Gerik bus crash: PTPTN loans of 13 UPSI students killed in accident fully settled, says Zambry * Court sets Aug 19 for decision in activist's appeal over challenge to online speech law * Local trio, foreign woman detained for holding three men against their will * Sukuk misuse case: Tan Sri quizzed by MACC for six hours * No electricity surcharge for Sabah, Labuan users until year-end * National Day 2025 to be launched in Johor, Malaysia Day 2025 in Penang * Court postpones decision on Lahad Datu vocational college murder case to July 23 * Four charged in Sabah for alleged role in multi-million ringgit investment scam * Gerik bus crash: Company's permit revoked with immediate effect, says Loke * George Town's heritage status safe, says Penang exco member * Man, 62, nabbed over alleged sexual assault on underage girl in Lahad Datu * 'Still Live' series in KL creates a shared space for sound and sketch * Permanent border wall seen as solution to smuggling in Kelantan, says police chief * Woman swept away by strong currents after car plunges into river found drowned * Sugar, rice and selected imported foods exempt from expanded SST, says Finance Ministry * Malaysia commits to more reforms, solidarity in labour rights agenda, says Steven Sim * Imported fruits hit with 5% tax under new SST rules * Sukuk misuse case: MACC records Tan Sri's statement * Cops find RM4.67mil worth of meth and ketamine in abandoned car in Gerik * Gerik crash: Cops advise bus driver not to make public comments * Preserving historic sites essential for cultural and economic growth, says activist * What are the items you will have to pay extra taxes for from July 1? * Industry concerns over expanded SST Singapore * Man arrested for allegedly shoplifting twice in Singapore's Changi Airport transit area * Passengers reschedule travel plans and seek refunds following Jetstar Asia's abrupt closure * Removal of mandatory minimum sentences for some dangerous driving offences in Singapore to kick in from Thursday (June 12) * Singaporean woman given six months' jail in Taiwan for stalking singer, threatening her online * World acclaimed singer Maher Zain makes long-awaited return to the region with a South-East Asia Tour 2025 * Drug trafficker in Singapore avoids death penalty by 0.01g, sentenced to 31 years' jail * Sacked Mediacorp employee arrested for voyeurism * Second round of Pofma sanctions for owner of The Online Citizen's website, social media accounts * National Trades Union Congress exploring options to match retrenched Jetstar Asia staff to roles at SIA Group: Labour chief * Qantas says Singapore airport fee hikes fuelled Jetstar Asia cut * Jetstar Asia closure: Here's what customers need to know * Jetstar Asia to cease operations from July 31, over 500 employees in Singapore affected Indonesia * Dozens arrested for Indonesian love scam ring targeting American men * Indonesia nears trade deals with EU, Eurasian bloc * Drone drops drugs into Indonesian prison * Businesses grapple with Bali's single-use plastics ban * Alleged laptop procurement graft puts ex-minister Nadiem in spotlight * Suspected fatal bullying cases in Indonesia highlight growing violence issue in schools * Govt revokes mining permits in Raja Ampat after outcry Thailand * Thai Foreign Minister champions bilateral talks with Cambodia * Female Thai police colonel accused of trafficking sedative drugs since 2022 * Thai defence minister unfazed by Cambodia's ICJ plan, says Thailand ready with response measures * Vietnamese 'romance scammers' busted in Thai luxury villa raid * Thai police to suspend female doctor over illegal sedative trafficking * Thailand's former Prime Minister Suchinda Kraprayoon, who cracked down on 1992 protests, dies at 91 Philippines * 'No one can stop' Sara Duterte impeachment trial: Philippine House prosecutors * The rise and fall of Joseph Estrada: From people's champion to disgraced Philippine president * Philippines exits EU 'high-risk' dirty money list * Filipino actor Miko Gallardo opens up about past rape, alleged blackmail * Senators return impeachment case against Sara Duterte to the Philippine House Vietnam * Patients with public health insurance suffer long waits at hospitals * Vietnam talks to Gap, Levi Strauss in battle to head off Trump tariffs * Qualcomm launches AI R&D centre in Vietnam * Vietnamese animation levels up with dual dialect debut Myanmar * UN envoy to Myanmar warns that violence puts country on 'path to self-destruction' * Toxic Thailand rivers pinned on Myanmar mines * Myanmar rebels claim to have shot down a fighter jet being used by military to attack ground targets Cambodia * Climate 'greenwashing' will harm Cambodian workers, suggests new report * Cambodia's economy shows resilience amid global uncertainty: World Bank * Tourism ministry shares details of Cambodia-China Tourism Year events * Cambodia moves forward with ICJ case over border dispute with Thailand * Anti-tank mine blast kills tractor driver in western Cambodia: official * Cambodia-Thailand border talks drag on Laos * Laos records US$56mil trade surplus in April * Chinese firm to undertake Lao agriculture and forestry development project * China Aircraft Corporation requests majority stake in Lao Airlines as govt seeks partnership Brunei * Brunei hosts first national conference for persons with different abilities * From battlefield to brotherhood in Brunei Aseanplus * Trump says China will supply rare earths in 'done' trade deal * Deal 'is done', says Trump, as China and US trade truce gets back on track after London talks * 5.9-magnitude quake rattles Taiwan * HK actor Louis Koo visits Penang for the first time, promises to return in the future: 'I've fallen in love' * Asean nations brace for Trump tariffs with bold stimulus packages * People's Liberation Army officer rescues five people from drowning in Henan, China * Actor Shaun Chen saves more after moving family from Singapore to Johor: 'Upgraded my lifestyle' * Meghalaya honeymoon murder: New bride devised two plans to kill husband, bad weather forced her to shelve 'plan A', switch to 'plan B' * Chinese soldier, famed for striking resemblance to top actress Dilraba, is elite sniper * Hong Kong advocates on why church sex abuse cases take time to surface * Malaysia to pioneer Asean TVET accreditation, says Zahid * Ringgit rebounds as US dollar weakens despite optimism over trade talk * US arrests another Chinese scientist with no permit to send biological material * Rising young talents MUAH! returns with second single titled 'Kajang', a taste of young life in Malaysia and South-East Asia * South Korean military suspends loudspeaker broadcasts against North Korea in border area * Tengku Zafrul to visit Washington on June 18 for tariff talks * Samyang Foods completes plant expansion amid growing demand for Buldak spicy ramyeon * Asean TVET Council must chart a clear path forward, says Zahid * Fuel prices June 12-18: Unchanged across the board * Australian murder suspect denies drying deadly mushrooms * Fans greet K-pop stars Jimin and Jung Kook of BTS upon discharge from military service * Sri Lanka hikes household power tariffs by 15 per cent, power regulator says * Season 3 of 'Squid Game' more intense than ever, director hints at possible spin-offs * Bangladesh issues travel warnings as Covid-19 infections rise in neighbouring countries * China stocks near 3-week high as Sino-US trade truce sparks optimism * AirAsia close to buying at least 100 Airbus jets in shift to A220, sources say * Man carries daughter through 12 years of school to gaokao * Kazakhstan says China's Xi to visit for Central Asian summit * Price wars eroding auto industry profits * MyCert: Malaysia data breaches up 29% in Q1 2025 * Malaysia records approved investments of US$21bil in 1Q * Rare earths: China's trump card in trade war with US * FBM KLCI rises at midday on U.S.-China trade optimism * Harimau Malaya roar with 4-0 win against Vietnam after TMJ pep talk * Comment: Why do the young woo Labubu? * May was world's second-hottest on record, EU scientists say * Pakistan raises defence budget 17% in boost for Chinese weapons suppliers * Asian equities rally after China-US framework on trade * South Korea's new President Lee Jae-myung asks citizens to recommend Cabinet members * Part toy, part fashion: How did Labubu get so popular? * US, China reach deal to ease export curbs, keep tariff truce alive * Najib's RM27mil money laundering trial to proceed, AGC rejects review request * Sony's bet on sports pays off with AI line judges at Wimbledon * Tesla's public robotaxi rides set for tentative June 22 start, CEO Musk says * Malaysia and the UN High Seas Treaty: What's next? * Pentagon chief vows to honor US-Australia sub deal * FBM KLCI rebounds in early trade on U.S.-China trade optimism * Ringgit opens higher against greenback as US-China trade talks resume * Hong Kong actress Crystal Fung denies rift with fellow celeb Louisa Mak * China's Li says US-China reach framework on trade, will report back to leaders * Out of the army and back to ARMY * HK to tighten national security scrutiny of restaurants * Frigate arrives in Australia as Tokyo bids for defence deal * Fire near Jogye temple halted, treasures spared * China extends hand to Korea * Smuggler stopped with spiders, birds and possums * Billionaire to plead guilty * Chong Wei advises injured Ng to seek treatment overseas * Penang's call for mindful tourism * Rexy wants to see Man-Tee become hardy boys * Grab eyes US$1.25bil bond sale for acquisitions * China bans bank from luring depositors with gifts * Banks expect one cut in OPR in 2H25 * Capital A is in the final stages of its PN17 exit plan, says Fernandes

Sudanese pound hits record low against USD: currency traders
Sudanese pound hits record low against USD: currency traders

The Star

time3 hours ago

  • The Star

Sudanese pound hits record low against USD: currency traders

KHARTOUM, June 11 (Xinhua) -- Sudanese pound has fallen to a record low, with the U.S. dollar trading at 2,760 pounds in the parallel market, according to currency traders on Wednesday. The official exchange rate set by the Central Bank of Sudan stands at 2,100 pounds per dollar. Foreign exchange traders described the current spike in foreign currency demand as "an all-time high that underscores the deep economic toll of the ongoing war." Sudanese economic expert Ayoub Abdul Hafeez, speaking to Xinhua, said that the pound's decline is likely to continue, driven by the ongoing civil conflict, unstable economic policies, falling remittances, and weakened exports. Since the outbreak of the conflict, Sudan's exchange rates have seen extreme volatility, with the dollar soaring from 560 to a record high, an increase of more than 391 percent in just over two years. On Tuesday, the World Bank issued a report on Sudan, revealing that the Sudanese economy contracted by an additional 13.5 percent in 2024, after shrinking by nearly one-third in 2023. It also pointed out that extreme poverty, defined as living on less than 2.15 dollars per day, rose to 71 percent of the population, more than doubling from 33 percent in 2022. Unemployment also surged, reaching 47 percent, according to the report. The report concluded that Sudan's economy is unlikely to return to pre-war levels before at least 2031 and stressed that any sustainable recovery would depend on ending the conflict and implementing broad structural reforms. Sudan remains gripped by the conflict between the Sudanese Armed Forces and the paramilitary Rapid Support Forces, which erupted in April 2023. The fighting has killed tens of thousands of people and displaced millions, both internally and across borders, deepening the country's humanitarian crisis.

Reforms ongoing and backed by solid evidence, says Azalina
Reforms ongoing and backed by solid evidence, says Azalina

Free Malaysia Today

time4 hours ago

  • Free Malaysia Today

Reforms ongoing and backed by solid evidence, says Azalina

Law and institutional reform minister Azalina Othman Said said more than 30 legislative amendments have been passed since 2023. (File pic) PETALING JAYA : The government's reform agenda is ongoing and backed by solid evidence, says law and institutional reform minister Azalina Othman Said. In a Facebook post, Azalina said she agreed with Prime Minister Anwar Ibrahim's remarks yesterday that reforms cannot be rushed, and stressed that systemic changes should not be executed hastily or rolled out merely to look good on paper. She said the current administration has moved at an unprecedented pace in laying the groundwork for institutional and legislative reforms, setting a benchmark not seen under previous governments. Azalina said the legal affairs division of the Prime Minister's Department, together with other agencies under her purview, had made significant progress in implementing reforms in a structured and comprehensive manner. This included the successful reinstatement of the Parliamentary Services Act 2025, and the implementation of more than 30 legislative amendments since 2023. 'This shows that the government's reform efforts are not mere rhetoric. 'This is clear evidence that the Madani government's reform agenda is in motion and being implemented. 'As policymakers, our duty is to ensure that every reform initiative is not only ambitious but, more importantly, feasible and beneficial to the Malaysian public,' she said. Azalina said the legal affairs division had launched the PetaRI portal, a dedicated online platform to provide the public with regular updates on the progress of government reform initiatives. 'Whether we like it or not, we must acknowledge that the Madani government has laid the foundation for reform at a pace unmatched by previous administrations. 'The proof lies in the institutional changes and legal updates that the public can assess for themselves,' she said.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store