The Government should consider reviewing its taxation policies and subsidy rationalisation measures, as both have a direct impact on the financial pressures currently faced by Malaysians, said Bersatu president Tan Sri Muhyiddin Yassin.
He said the review should form part of broader efforts to ease the rising cost of living, support struggling businesses and strengthen the delivery of public services.
Muhyiddin was responding to the Prime Minister’s announcement of several measures aimed at reducing pressure on households and businesses. He welcomed the initiatives but said further and more comprehensive measures should be introduced through Budget 2027.
“I hope these measures will be followed by other comprehensive steps to ease the people’s cost of living, support businesses and stimulate economic growth through Budget 2027.
“This includes reviewing taxation policies and subsidy rationalisation,” he said in a Facebook post on Monday.
Muhyiddin also stressed that ministries and relevant government agencies must act quickly to distribute the allocations announced, ensuring assistance reaches eligible individuals and businesses without unnecessary delays.
Among the measures announced by the Prime Minister was the restoration of the monthly RON95 subsidised fuel eligibility limit from 200 litres to 300 litres.
The Government has also raised the e-invoicing exemption threshold, allowing businesses with annual sales of up to RM3 million to remain outside the implementation requirement.
Muhyiddin said the move could provide some relief to businesses facing higher operating costs while also helping to ease the financial burden on households.
Other initiatives include an additional RM500 million allocation for school maintenance, the digitalisation of healthcare services and access to artificial intelligence software subscriptions for young people.
The Government will also provide an additional RM1 billion in microcredit facilities for small traders, alongside RM200 million in grants aimed at supporting small hawkers, night-market traders and women running home-based businesses.
Muhyiddin expressed hope that the measures would improve public service delivery, particularly in education, healthcare and the digital economy, while giving micro, small and medium enterprises (MSMEs) greater room to sustain and expand their operations.
He said continued support for smaller businesses would be important in helping them navigate rising costs while contributing to stronger economic activity nationwide.
