PUTRAJAYA, Aug 30 — The government today announced an increase in the monthly fuel entitlement under the BUDI MADANI initiative, with the allocation for BUDI95 users raised to 300 litres and BUDI Diesel to 400 litres, effective Sept 1.

Prime Minister Datuk Seri Anwar Ibrahim said the BUDI95 entitlement would be increased from 200 to 300 litres a month, while the BUDI Diesel entitlement would rise from 300 to 400 litres.

“This will benefit 16 million BUDI95 users and more than 500,000 diesel users, particularly those using pickup trucks and four-wheel-drive vehicles,” he said in his address at the 2026 National Day Prime Minister’s Address at the Putrajaya International Convention Centre (PICC) here today.

Also present were Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi, Communications Minister Datuk Seri Fahmi Fadzil and National Unity Minister Datuk Aaron Ago Dagang.

The government had previously set the BUDI95 monthly entitlement at 300 litres when the programme was introduced on Sept 30, 2025, before adjusting it to 200 litres effective April 1, 2026.

The targeted subsidy rationalisation was introduced to ensure assistance reaches eligible recipients while reducing leakage and misuse of subsidised fuel.

Anwar said the government would continue to implement targeted subsidy policies while taking into account the needs of the people and the country’s fiscal position, particularly amid volatility in global oil markets caused by geopolitical developments, including the conflict in West Asia.

In a statement posted after the address, Anwar said several immediate measures had also been announced to address concerns over the cost of living and pressures faced by Malaysians in their daily lives.

These include additional allocations for school infrastructure, free artificial intelligence (AI) application subscriptions for youths, measures to speed up treatment and reduce waiting times at government clinics and hospitals, a higher e-Invoice exemption threshold and increased financing for entrepreneurs and small businesses.

RM1.5 Billion for School Maintenance

Anwar said the government had agreed to increase the allocation for the maintenance of all types of schools in 2027 by 50 per cent, from RM1 billion to RM1.5 billion.

The increase will cover all school streams, including national schools, Chinese and Tamil national-type schools, religious schools, tahfiz and pondok institutions, as well as special education institutions.

“I have also instructed the Education Ministry to mobilise teams to every district to assess applications for school infrastructure repairs so that maintenance works can begin as early as January 2027,” he said.

Free AI Subscriptions for 100,000 Youths

The government will also expand the AI for the People programme to youths aged between 18 and 30.

Anwar said 100,000 youths who successfully complete the prescribed modules would receive free three-month subscriptions to selected AI applications, namely IlmuChat, Gemini Enterprise, Wonderclip and MuleRun.

The initiative is intended to strengthen AI literacy and support the country’s wider digital transformation agenda.

RM1 Billion for Public Healthcare Digitalisation

In the public healthcare sector, the Malaysian Communications and Multimedia Commission (MCMC) will provide RM1 billion to strengthen digital connectivity and healthcare infrastructure.

Anwar said the allocation would support the implementation of Electronic Medical Records and improve internet connectivity at 150 hospitals and more than 2,000 public health clinics nationwide.

The measures are aimed at strengthening the digital transformation of the public healthcare system while helping to improve access to healthcare services.

e-Invoice Exemption Threshold Raised to RM3 Million

The government has also agreed to raise the annual e-Invoice exemption threshold from RM1 million to RM3 million.

Anwar said businesses with annual sales not exceeding RM3 million would therefore not be required to implement the e-Invoice system.

The move is expected to ease compliance requirements for smaller businesses and reduce the administrative burden on micro and small enterprises.

Additional RM1 Billion for Micro Financing

Meanwhile, the government will provide an additional RM1 billion in micro-financing facilities, bringing the total financing allocation for 2026 from RM5 billion to RM6 billion.

Anwar also announced the introduction of the RM200 million MADANI Prosperity Grant to assist hawkers, small traders, night-market traders and women running home-based businesses.

The grant is intended to provide additional support for small-scale entrepreneurs and strengthen their ability to sustain and expand their businesses.

Anwar said all six immediate initiatives would be formally implemented beginning Sept 1, as part of the government’s commitment to ensuring that the benefits of national development are distributed more widely among Malaysians.

“The six immediate measures will provide direct benefits to the people, covering students, youths, small and medium-sized traders and entrepreneurs, as well as the public healthcare sector,” he said.

Anwar said the government would continue to listen to the concerns of Malaysians and work to ensure that the country’s economic progress translated into tangible benefits and a more prosperous and dignified quality of life.

He added that several other announcements would be made during the Malaysia Day celebrations in Sarawak and in Budget 2027.