Malaysia has increased the threshold for household electricity subsidies, allowing domestic consumers using up to 800 kilowatt-hours (kWh) per month to benefit from subsidies, Prime Minister Anwar Ibrahim announced. The adjustment, up from the previous 600 kWh, aims to alleviate financial pressures on households as they contend with heightened energy usage due to ongoing hot weather and haze.
This temporary measure, set to last until December 31, will exempt eligible households from the Automatic Fuel Cost Adjustment (AFA), retail charges, and the Sales and Service Tax (SST). The AFA, a mechanism introduced in July 2025, recalibrates electricity pricing monthly in response to fuel cost fluctuations, leading to either rebates or additional charges for consumers.
Prime Minister Anwar emphasized the government’s commitment to continuously monitor fuel prices and energy market trends. This vigilance is intended to ensure that electricity tariffs strike a balance between affordability for consumers, supply security, and the long-term sustainability of the energy sector.
The decision to raise the subsidy threshold comes as Malaysia experiences an increase in household electricity consumption, driven by the current climatic conditions. By extending the subsidy eligibility, the government aims to offer relief to citizens facing increased energy expenditures during this period.
