KUALA LUMPUR: The government's subsidy expenditure fell 40.1 per cent to RM23.43 billion in 2025 from RM39.10 billion in 2024.
This is supported by lower crude oil prices and targeted diesel and petrol subsidy reforms.
According to the Auditor General's Report 2/2026 on the federal government's financial statements for 2025, the RM15.67 billion reduction was mainly driven by a decline in petroleum product subsidies, which fell from RM34.91 billion to RM19.11 billion.
"The reduction in subsidy expenditure was partly due to the decline in global crude oil prices and initiatives to reform targeted diesel subsidies from June 2024 and petrol subsidies from September 2025," the report said.
It said the average global crude oil price fell to US$69.05 per barrel in 2025 from US$80.81 per barrel in 2024.
