Muhyiddin backs measures to ease living costs

Photo courtesy of The Star

Former prime minister Muhyiddin Yassin has welcomed government measures aimed at easing Malaysia’s cost-of-living pressures, supporting businesses and improving public service delivery, highlighting two changes he expects to provide practical relief.

Fuel allowance cap restored

Muhyiddin pointed to the restoration of the RON95 fuel subsidy eligibility cap from 200 litres to 300 litres per month. He said the higher allowance should help members of the public manage rising costs, particularly those who depend heavily on private vehicles for work and daily travel.

The change gives eligible motorists an additional 100 litres of subsidised fuel each month. Its effect will vary according to individual driving patterns, but it may be significant for commuters covering long distances or households with limited access to public transport.

Fuel costs feed into wider household budgets and business expenses, so subsidy rules are closely watched. Restoring the previous cap is intended to reduce the risk that regular users exceed their monthly allocation and must pay a higher rate for the remainder.

More firms exempt from e-Invoicing

The former prime minister also welcomed the decision to raise the e-Invoicing exemption threshold to businesses recording annual sales of up to RM3 million. He said the move should help companies cope with current financial pressures.

Smaller businesses have faced concerns over the time, systems and administrative work required to adopt digital invoicing. Expanding the exemption gives more operators additional breathing room while Malaysia continues its wider transition to electronic tax reporting.

Muhyiddin’s response was broadly supportive of initiatives that he said would ease pressure on the public, assist the business sector and strengthen the delivery of government services. The remarks reported by The Star did not include a wider assessment of the government’s economic programme.

Relief measures under scrutiny

The practical impact of both changes will depend on implementation. Motorists will look for clear eligibility rules and a smooth subsidy system, while businesses will need certainty over whether they fall below the revised e-Invoicing threshold and when any future obligations may apply.

For the government, the challenge is balancing targeted financial relief with spending limits and its longer-term effort to modernise tax administration.

What it means for foreigners in Malaysia

Foreign residents should not assume they qualify for subsidised RON95, as eligibility rules may differ by status and vehicle. Foreign-owned small businesses, however, should check whether the RM3 million e-Invoicing exemption applies to their Malaysian entity and seek professional advice where necessary.

1 September 2026