Putrajaya — Malaysia’s government remains confident in its ability to manage the country’s economy despite rising global crude oil prices and increasing cost of living pressures, Prime Minister Datuk Seri Anwar Ibrahim said on Wednesday.

Speaking at the Finance Ministry’s monthly assembly, Anwar, who also serves as Finance Minister, acknowledged the challenges posed by the sharp rise in global oil prices. The price of crude oil has climbed well above the US$70 per barrel benchmark used in last year’s budget projections, reaching between US$110 and US$120 per barrel, he noted. This increase has intensified economic pressures, requiring careful balancing between alleviating the public’s financial burdens and ensuring prudent management of public funds.

The Prime Minister highlighted the government’s commitment to supporting Malaysian households through increased allocations for key subsidy programs, including Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (Sara). Funding for these initiatives has nearly doubled, rising to RM15 billion from RM8 billion when he assumed office.

Anwar defended the government’s subsidy rationalisation measures, describing them as difficult but necessary steps to reduce wastage and enhance the efficiency of public spending. “Responsible government means you only borrow what you have to in order to manage the economy,” he said, emphasizing the need to balance fiscal prudence with social support mechanisms.

Addressing the ministry’s civil servants, the Prime Minister urged greater effort in ensuring effective policy implementation and administrative efficiency. He underscored that the success of Budget 2027 would depend not only on sound policy decisions but also on their timely and efficient execution. “If wages have been increased, fuel prices have been lowered and the economy is doing well, but our work remains sluggish and slow… that is a problem,” Anwar remarked, calling for faster responses and commitment from government officials.

He also stressed the importance of combating corruption and leakages within the public service, linking this to broader efforts to improve civil servants’ welfare. Despite challenges and public criticism, Anwar encouraged staff to remain focused on their responsibilities.

On the subject of institutional reforms, the Prime Minister pointed to the recently enacted Fiscal Responsibility Act and the Parliamentary Services Act as key milestones in promoting greater accountability and democratic oversight within government operations. These measures, he said, form part of a comprehensive approach to ensure transparency and responsible governance amid Malaysia’s ongoing economic and social development efforts.