KUALA LUMPUR – Prime Minister Datuk Seri Anwar Ibrahim today defended the government’s decision to fix the price of RON95 petrol at RM1.99 per litre exclusively for Malaysians, saying public funds must benefit citizens rather than foreigners with limited contribution to national revenue.
“I am the prime minister of Malaysia, not of foreigners,” he said.
“Foreigners do not pay taxes like our citizens. In which country do non-citizens receive the same subsidies as locals?”
Delivering his speech at the launch of the 2025 National Month and Fly the Jalur Gemilang campaign at Dataran Tanjung Emas in Muar, Anwar said the move reflects the government’s commitment to social justice under the Madani framework.
He said universal fuel subsidies, including to non-citizens, have long strained public finances and can no longer be justified under current fiscal pressures.
The newly announced RM1.99 RON95 price – a six-sen reduction – applies only to Malaysians. Foreigners, including tourists from Singapore, will pay the market rate, currently around RM2.50 to RM2.60 per litre.
“This is not discrimination, but the act of a sovereign and responsible government,” he said.
“It is only fair that the billions we spend on subsidies go towards our own people.”
Anwar also hit out at a Johor opposition leader who reportedly criticised the move, questioning the exclusion of foreigners from the lower pricing.
“I don’t understand. We have a leader asking why the government won’t subsidise petrol for foreigners.
“Where’s the logic? My primary duty is to safeguard the welfare of Malaysians.”
He pointed out that even with the revised pricing, Malaysia’s fuel remains among the cheapest in the region.
“If you don’t believe me, just compare with Singapore, Thailand or Indonesia. Prices there are significantly higher,” he said. “Yet here we are, still able to provide RON95 at RM1.99 per litre. That’s my responsibility.”
Anwar said the targeted subsidy model would help reduce national expenditure and curb abuse, particularly by foreign motorists who benefit from lower fuel prices despite not contributing directly to public coffers.
He added that savings from the rationalisation exercise would be channelled towards welfare programmes, rural development, and a gradual increase in the minimum wage – including for civil servants and those in government-linked companies.
“This is about returning the people’s money.
“We want to ensure that every ringgit spent by the government reaches those who need it most.”
Also present were Communications Minister Datuk Fahmi Fadzil, Johor Menteri Besar Datuk Onn Hafiz Ghazi, Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar and Information Department director-general Julina Johan. – July 27, 2025