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Reuters
2 days ago
- Business
- Reuters
Malaysia PM announces cash aid, fuel price cut to address rising living costs
KUALA LUMPUR, July 23 (Reuters) - Malaysia's Prime Minister Anwar Ibrahim announced new measures on Wednesday to address growing public disquiet about the rising cost of living, including a cash handout for all adult citizens and a promise to lower fuel prices. His statement in a televised broadcast came ahead of a planned protest to be held in Malaysia's capital Kuala Lumpur on Saturday, aimed at forcing Anwar to step down over escalating prices and a failure to deliver on promised reforms. Anwar's administration has carried out a number of measures to boost revenue and productivity this year, including a minimum wage hike, increased electricity tariffs on heavy power users and an expanded sales and services tax. Anwar has said the moves were mainly targeted at large businesses and the wealthy, but critics have voiced fears that higher costs would eventually be passed down to consumers, including lower and middle-income earners. On Wednesday, Anwar said all Malaysians above 18 will receive 100 ringgit ($23.67) in a one-off cash handout to be disbursed from August 31. The government will spend a total 15 billion ringgit ($3.55 billion) in cash aid in 2025, up from 13 billion ringgit originally allocated for the year, he said. Police have said they expect between 10,000 and 15,000 people to attend Saturday's protest, which has been organised by opposition parties. "I acknowledge the complaints and accept that the cost of living remains a challenge that must be addressed, even though we have announced various measures thus far," Anwar said, adding that more initiatives to aid those in poverty will be launched on Thursday. Anwar said the government will also announce details of a long-awaited plan to adjust blanket subsidies on the widely used RON95 transport fuel before the end of September. Once the subsidy changes are implemented, Malaysians will see fuel prices at the pump drop to 1.99 ringgit per litre, compared to the current price of 2.05 ringgit, Anwar said. Foreign nationals however will have to pay unsubsidised market prices for the fuel, he said. Anwar did not provide details on how the measure will be enforced. Analysts say changes to the fuel subsidy rationalisation scheme - originally set for mid-2025 and aimed at also removing subsidies for the wealthy - could affect Malaysia's fiscal consolidation plans. Kenanga Investment Bank economist Muhammad Saifuddin Sapuan said the cash handout and subsidy measures were necessary to boost domestic demand, amid external headwinds arising from ongoing global uncertainty. "Nevertheless, this comes at a cost, especially on how the government will finance it, and likely put pressure on its fiscal target," he said. Kathleen Chen, of Fitch Ratings' Sovereigns team, said further delays or insufficient progress on subsidy rationalisation could jeopardise the government's goal to reduce its deficit to 3% by 2028. Fitch expects Malaysia's general government debt to remain high, at around 76.5% of GDP in 2025, with only a gradual decline in the medium term, she said. ($1 = 4.2250 ringgit)
CNA
3 days ago
- Business
- CNA
Malaysia PM Anwar announces US$24 cash handout for all adults to head off rising costs
KUALA LUMPUR: Malaysia's Prime Minister Anwar Ibrahim on Wednesday (Jul 23) announced new measures to address growing public disquiet about the rising cost of living, including a cash handout for all adult citizens and a promise to lower fuel prices. The announcement came ahead of a planned protest to be held in Malaysia's capital Kuala Lumpur on Saturday, calling for Anwar to step down over escalating prices and a failure to deliver on promised reforms, among other concerns. Anwar's administration has carried out a number of measures to boost revenue and productivity this year, including a minimum wage hike, increased electricity tariffs on heavy power users, and new sales taxes on some imported fruits and luxury goods. Anwar has said the moves were mainly targeted at large businesses and the wealthy, but critics have voiced fears that higher costs would eventually be passed down to consumers, including lower and middle income earners. On Wednesday, Anwar said all adult Malaysians above 18 years old will receive a RM100 (US$24) one-off cash aid to be disbursed from Aug 31. The government will spend a total RM15 billion in cash aid in 2025, up from RM13 billion originally allocated for the year, he said. Police have said they expect between 10,000 and 15,000 people to attend the Saturday protest, which has been organised by opposition parties. "I acknowledge the complaints and accept that the cost of living remains a challenge that must be addressed, even though we have announced various measures thus far," Anwar said. He added that further initiatives to aid those in poverty will be launched on Thursday. Anwar said the government will also announce details on a long-awaited plan to remove blanket subsidies on the widely used RON95 transport fuel before the end of September. Once the subsidy changes are implemented, Malaysians will see fuel prices at the pump drop to RM1.99 per litre, compared to the current price of RM2.50, Anwar said. Foreign nationals, however, will have to pay unsubsidised market prices for the fuel, he added. Anwar previously said in his Budget 2025 speech last year that RON95 subsidies will be cut for Malaysia's top 15 per cent income group. It is not clear whether this remains part of the rationalisation plan. Some middle-class Malaysians had expressed concerns that they could fall into this group - which a 2022 income survey defined as households with a combined monthly income of at least RM13,500 - despite already struggling with rising expenses. Anwar on Wednesday also announced additional allocations for a government programme aimed at increasing access to affordable goods and necessities, and vowed to improve other existing aid measures. Malaysia has seen inflation fall this year, but worries persist over increasing prices of basic necessities like food. Data released this week showed consumer prices rising 1.1 per cent from a year earlier last month, but the costs of food and beverages were up at a faster pace of 2.1 per cent.
Reuters
3 days ago
- Business
- Reuters
Malaysia PM announces new measures to address rising living costs
KUALA LUMPUR, July 23 (Reuters) - Malaysia's Prime Minister Anwar Ibrahim on Wednesday announced new measures to address growing public disquiet about the rising cost of living, including a cash handout for all adult citizens and a promise to lower fuel prices. The announcement came ahead of a planned protest to be held in Malaysia's capital Kuala Lumpur on Saturday, calling for Anwar to step down over escalating prices and a failure to deliver on promised reforms, among other concerns. Anwar's administration has carried out a number of measures to boost revenue and productivity this year, including a minimum wage hike, increased electricity tariffs on heavy power users, and new sales taxes on some imported fruits and luxury goods. Anwar has said the moves were mainly targeted at large businesses and the wealthy, but critics have voiced fears that higher costs would eventually be passed down to consumers, including lower and middle income earners. On Wednesday, Anwar said all adult Malaysians above 18 years old will receive a 100 ringgit ($23.67) one-off cash aid to be disbursed from August 31. The government will spend a total 15 billion ringgit ($3.55 billion) in cash aid in 2025, up from 13 billion ringgit originally allocated for the year, he said. Police have said they expect between 10,000 and 15,000 people to attend the Saturday protest, which has been organised by opposition parties. "I acknowledge the complaints and accept that the cost of living remains a challenge that must be addressed, even though we have announced various measures thus far," Anwar said. He added that further initiatives to aid those in poverty will be launched on Thursday. Anwar said the government will also announce details on a long-awaited plan to remove blanket subsidies on the widely used RON95 transport fuel before the end of September. Once the subsidy changes are implemented, Malaysians will see fuel prices at the pump drop to 1.99 ringgit per litre, compared to the current price of 2.50 ringgit, Anwar said. Foreign nationals however will have to pay unsubsidised market prices for the fuel, he added. Anwar also announced additional allocations for a government programme aimed at increasing access to affordable goods and necessities, and vowed to improve other existing aid measures. Malaysia has seen inflation fall this year, but worries persist over increasing prices of basic necessities like food. Data released this week showed consumer prices rising 1.1% from a year earlier last month, but the costs of food and beverages were up at a faster pace of 2.1%. ($1 = 4.2250 ringgit)
Mail & Guardian
3 days ago
- Politics
- Mail & Guardian
Paul Biya's presidential candidacy a crisis of democracy in Cameroon
Cameroon's president, Paul Biya, has been in power for four decades. Photo: Marco Longari/AFP On 14 July 2025, Paul Biya, Cameroon's 91-year-old president, Failure to confront this moment will also teach Africa's youth that formal politics offers neither accountability nor meaningful change. Cameroon has not experienced a peaceful transfer of power since independence. Power remains concentrated in the presidency, while opposition parties are The judiciary is subordinate to the executive and electoral bodies lack credibility. The system has grown accustomed to continuity rather than contestation and, over time, democracy has been reduced to a set of controlled rituals rather than a functioning political culture. Biya's extended rule is not just a national problem. It reflects a regional weakness. Over the years, organisations such as the African Union and Central African regional bodies have failed to take meaningful action on cases of long-term incumbency, especially where elections proceed without outright violence. The quiet tolerance of indefinite leadership has allowed authoritarianism to be dressed in the language of legality. The AU's Charter on Democracy, Elections and Governance calls for term limits, transparent elections, and citizen participation, but its enforcement has been weak and inconsistent. This failure Within Cameroon, the consequences of this political stagnation are clear. The conflict in the Anglophone regions remains unresolved, with thousands displaced and ongoing reports of violence. State responses have relied on force and token gestures of engagement. A lasting solution requires a shift towards genuine political dialogue that includes local voices and acknowledges the historical and structural roots of the crisis. Without that, the cycle of Decentralisation, long promised but never fully delivered, must also be addressed. The country remains one of the most centralised in Africa, with local governments underfunded and politically weak. Meaningful decentralisation would empower communities and signal a commitment to democratic reform. It would reverse the long-standing exclusion of peripheral regions from national decision-making. Electoral reform is another urgent priority. Public confidence in the electoral process is low, with allegations of fraud, media bias and voter intimidation common in each election cycle. If elections are to serve as more than a legitimising tool for incumbents, they must be grounded in fairness, transparency and institutional independence. This will require a review of the legal framework, the composition of the electoral commission and equal access to campaign platforms. Biya's continued presence in power highlights a broader generational crisis in African politics. Leadership is dominated by ageing elites, while the continent's youthful majority is sidelined. In Cameroon, many young people have only ever known one president. Their exclusion from governance is not just symbolic; it has practical consequences for political legitimacy, innovation and long-term development. When young citizens do not see themselves reflected in leadership, they disengage, emigrate or, in some cases, mobilise through informal or radical means. Any vision for democratic renewal must include the deliberate inclusion of youth in decision-making spaces, not as tokens, but as central actors in shaping the country's future. None of these reforms can succeed in isolation from economic renewal. Cameroon's youth, who make up 60% of the population, face high Cameroon's crisis cannot be addressed through surface reforms or another tightly controlled election. If there is to be a turning point, regional actors must take responsibility. The AU and other African leaders should not view Biya's decision as an isolated national matter, but as part of a broader pattern that threatens the continent's commitment to inclusive political governance. Silence in the face of democratic decline is not neutral. It is a form of complicity. African institutions must be prepared to act when those in power no longer serve the people or uphold democratic norms. Biya's candidacy is not simply a continuation of the past. It is a warning about the future. Helen C Folefac and Tinashe Sithole are post doctoral research fellows at the SARChI Chair African Diplomacy and Foreign Policy at the University of Johannesburg.
RNZ News
18-07-2025
- Politics
- RNZ News
Local democracy under threat? Officials warn against removing council 'four wellbeings'
Photo: RNZ / Quin Tauetau Removing the "four wellbeings" for councils is unlikely to make much difference, and could even impact services and development, officials' analysis of the government's law changes shows. The report shows the approach taken by the government can be expected to overall improve clarity and concerns about spending "beyond core infrastructure" - but would undermine stability and localism. It shows the Department of Internal Affairs would have preferred to keep the status quo. The Local government (System Improvements) Amendment legislation passed its first reading last night , with the select committee reporting back in November. The government and the minister have made their views clear, stating that councils have "lacked fiscal discipline", that they "are not mini-Parliaments; they are service delivery agencies", and that residents have become increasingly concerned about rates. The opposition parties have argued it is a power grab that degrades the rights of democratically elected councils. A key part of [ the bill is the government's proposal to remove all 10 mentions of the "four wellbeings" - social, economic, environmental and cultural - from the law governing councils. However, the Regulatory Impact Statement (RIS) on the bill from Internal Affairs said that in isolation, this change was "unlikely to benefit communities more than the status quo". "Previous regulatory impact statements have suggested that despite various changes to the purpose by successive governments, there has been limited impact on council decision-making, activities, and service levels, regardless of intended focus. "Refocusing the purpose of local government will likely have limited impact on its own and may create implementation costs and issues." The paper highlighted that the "proposed changes will likely disrupt the sector" and had led councils to do "costly compliance exercises in the past to determine which activities fit within a narrower purpose". Despite this narrowing, it said the purpose of local government "should reflect the broad range of responsibilities local authorities have under all primary and secondary legislation in New Zealand" - pointing to the 47 statutes councils already have responsibilities under. It noted that departmental feedback from agencies, including the Infrastructure Commission and the Ministry of Housing and Urban Development, as well as the independent Future of Local Government Review (FLGR) - effectively binned by the government a year ago - had "contrary views to those of ministers". "Feedback suggested that removing the four wellbeings could be seen as disempowering local government, and while focusing councils on low rates may succeed, it would likely come at the expense of key council services and infrastructure development." It noted the FLGR had found successive governments' changes to councils' purpose were disruptive, and recommended the four wellbeings be entrenched in law to provide greater certainty. Removing the wellbeings "could impact [Treaty of Waitangi] settlement arrangements between iwi or hapū and councils". However, some councils had told the minister, "they felt it would also help them to manage community expectations and do fewer things better". In a table assessing the costs and benefits of the legislation, the officials found that "restraint" (addressing concerns about spending beyond core services) and "clarity" (providing useful direction about what councils should be expected to do) were improved compared to the status quo. However, "stability" (minimising disruption and allowing councils to plan effectively) and "localism" (recognising the broad role of councils valued in communities and empowering them to decide for themselves) would be worse than the status quo. The RIS suggested that other changes proposed by the government, including additional performance monitoring and rate capping, were "more likely" to support the government's objectives. While ministers have continued to say the changes are targeted at a lack of fiscal discipline by councils, the RIS stated "cost pressures on councils are being driven by capital and operating cost escalation, flowing from supply chain upheaval and a tight labour market during the Covid-19 pandemic, and accelerated headline inflation since". "Infrastructure costs have long been a major cause of rate increases, with councils needing to upgrade infrastructure, especially for water and wastewater treatment plants, and invest in more infrastructure to meet growth demands. "Around two-thirds of capital expenditure for councils is applied to core infrastructure, not including libraries and other community facilities, or parks and reserves." Local government Minister Simon Watts, at the first reading speech on Thursday, said, "We looked at the evidence and it showed that whenever the four aspects of community wellbeing are included in the purpose of local government, rates go up as councils are focused on too many things". Local Government Minister Simon Watts says the bill is all about reining in costs. Photo: RNZ / Samuel Rillstone Internal Affairs' analysis showed rate increases were "about two percent higher when the four wellbeings are in the Act", so while it bears out the minister's statement, the effect cannot explain the full weight of rate rises across the country. The data used also did not account for population growth or distinguish between residential or commercial ratepayers. "Usually, where rates have increased faster, this is because costs for councils have risen faster. The current infrastructure deficit for local government is evidence of prolonged underinvestment, where rates (along with other revenue sources) did not increase enough to enable responsible asset management. "For example, despite rates appearing to increase more towards 2007, the Infrastructure Commission has identified the period from 1995 to 2008 as a time when rates were consistently below their post-World War II average as a share of gross domestic product, and this coincided with a deterioration of the stock of transport, water and waste assets." The analysis stated that the minister only allowed officials to examine two options: the status quo and his preferred approach. "The data and evidence used in carrying out this analysis was generally low quality due to limitations on options exploration and consultation. "There was a heavy reliance on previous regulatory impact statements that covered the same or reverse law changes." The inclusion of the wellbeings has been added to or removed from the law four times since the Act came into force in 2003, so there were more than enough previous analyses to draw from. It remains unclear whether rate capping, which the minister wants "before Christmas", would be included in the bill after the select committee reports back in November. However, the analysis repeatedly highlights that efforts to "limit council revenue from rates" are part of the government's intended package of reform, and a section laying out a timeline of changes includes a redacted entry that follows the implementation of the changes described in the bill. The disclosure statement prepared by the department noted that the RIS was limited to assessing the impacts of refocusing the purpose of local government. It said the Regulations Ministry had determined other aspects of the bill did not need to be assessed, "on the grounds that these proposals would have no or only minor economic, social, or environmental impacts". The ministry also asked the minister to provide an analysis on rates capping when reporting back to Cabinet on the overall bill in December. The statement also showed Minister Watts had asked for consultation relating to transparency and accountability with the Free Speech Union lobby group, the Taxpayers Union lobby group, the New Zealand Initiative think tank, Transparency International, and other ratepayer groups and academics. On performance management, the department also sought feedback from a reference group, and on regulatory relief, the department was instructed to consult LGNZ, Local Government Professionals NZ, Federated Farmers, and Business NZ. Officials also shared a clause of the draft bill with the Local Government Funding Agency. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
