KUALA LUMPUR, Oct. 5 -- The government has managed to reduce its subsidy expenditure by 40.1 per cent to RM23.43 billion in 2025 from RM39.10 billion in 2024, supported by the decline in crude oil prices and the implementation of the targeted diesel and petrol subsidy reforms.

According to the Auditor General's Report (LKAN) 2/2026 on the Federal Government's Financial Statements for 2025, the RM15.67 billion reduction was partly attributable to a significant decrease in petroleum product subsidy, from RM34.91 billion in 2024 to RM19.11 billion in 2025.

"The reduction in subsidy expenditure was partly due to the decline in global crude oil prices and initiatives to reform targeted diesel subsidies from June 2024 and petrol subsidies fro...