The reduction in subsidy expenditure was partly due to the decline in global crude oil prices and targeted diesel and petrol subsidies, the A-G's report said.

KUALA LUMPUR: The government reduced its subsidy expenditure by 40.1% to RM23.43 billion in 2025 from RM39.10 billion in 2024, says the auditor-general’s report.

According to the report on the government’s financial statements for 2025, the RM15.67 billion reduction was partly due to a significant decrease in petroleum product subsidies, from RM34.91 billion in 2024 to RM19.11 billion last year.

"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," it said.