As Malaysia grapples with rising energy demands due to extreme weather conditions, the government has taken steps to alleviate the financial burden on households. In response to increased electricity consumption spurred by hot weather and haze, Prime Minister Anwar Ibrahim announced a temporary adjustment in the electricity subsidy scheme.
The Malaysian government has increased the monthly electricity consumption threshold eligible for household subsidies from 600 kilowatt-hours (kWh) to 800 kWh. This measure, effective immediately, is set to last until December 31, aiming to ease cost-of-living pressures for domestic consumers.
Under this new threshold, households consuming up to 800 kWh per month will be exempt from several charges, including the Automatic Fuel Cost Adjustment (AFA), applicable retail charges, and the Sales and Service Tax (SST). The AFA mechanism, which adjusts electricity charges monthly based on fuel prices, was introduced in July 2025 and can lead to either rebates or additional charges for consumers.
Prime Minister Anwar emphasized the government’s commitment to balancing household affordability with energy supply security and the long-term sustainability of the sector. He noted that the authorities would keep a close watch on fuel prices and energy market conditions to ensure that tariff policies remain fair and effective.