The government will continue providing the RM300 monthly BUDI MADANI Diesel cash assistance while introducing an additional one-off interim RM100 payment for eligible recipients amid rising global fuel prices and supply chain uncertainty.
Economy Minister Akmal Nasrullah Mohd Nasir said the measures form part of the government’s targeted intervention strategy aimed at protecting lower-income groups and vulnerable sectors from the impact of the ongoing global supply crisis.
Speaking after the National Economic Action Council (MTEN) meeting, Akmal Nasrullah stressed that Putrajaya remains committed to ensuring the rakyat are not left to face rising living costs without support.
“The government will continue implementing targeted interventions so that the public will not be affected without the necessary assistance,” he said.
According to the minister, the continuation of diesel subsidies alongside the additional RM100 interim payment is intended to ease financial pressure caused by volatile global energy markets and rising transportation costs.
Despite challenging global conditions, Akmal Nasrullah said Malaysia’s economy remained resilient, recording stronger-than-expected GDP growth of 5.4 per cent in the first quarter of 2026.
He attributed the growth to strong domestic demand, stable manufacturing and services sectors, increased private investments and continued tourist arrivals.
The minister noted that Malaysia’s economic performance surpassed several regional economies including Singapore and Philippines, although still trailing behind Vietnam and Indonesia.
He also highlighted that the country’s unemployment rate remained stable at 2.9 per cent, reflecting continued resilience in domestic economic fundamentals.
However, Akmal Nasrullah warned that the effects of the global supply crisis are expected to become more significant by the third quarter of the year, particularly affecting prices, industrial operating costs and employment.
He said Brent crude oil prices had risen moderately in recent weeks due to geopolitical tensions and concerns over global energy supply stability.
Malaysia’s inflation rate also increased to 1.9 per cent in April from 1.7 per cent in March, mainly driven by higher transportation costs linked to rising diesel and RON97 fuel prices.
Apart from fuel assistance, the government is also strengthening food security measures, including the distribution of the RM300 per hectare Ploughing Incentive for Farmers beginning today.
MTEN also reviewed proposals to improve the Subsidised Diesel Control System (SKDS), including potential adjustments to diesel subsidy quotas aimed at reducing leakages while ensuring businesses and supply chains remain unaffected.
Government data showed that more than 398,000 vehicles had registered under the SKDS programme as of April 9, including over 375,500 goods transport vehicles and nearly 23,000 public transport vehicles.
Akmal Nasrullah added that support for small and medium enterprises (SMEs) would also be expanded, especially for businesses affected by prolonged cost pressures from the global energy situation.
Among the measures announced was Bank Negara Malaysia’s RM5 billion SME Stabilisation Relief Facility aimed at helping affected SMEs maintain cash flow and business operations.
“The government’s approach is not reactive,” he said.
“We are taking action after weeks of monitoring, recalibration and cooperation across ministries to ensure every decision can be effectively implemented,” he added.
