Kuala Lumpur: The Finance Ministry today announced a package of enhanced subsidies and cash assistance for farmers, smallholders and diesel users amid continued pressure from global energy disruptions.
“The Madani Government’s priority is clear: to ensure the security of supply of essential goods for the people, following the sharp increase in oil prices and global supply chain disruptions.
“The measures announced today involve additional expenditure, including to support food producers, to ensure the continuity of food supply for the people,” Prime Minister Datuk Seri Anwar Ibrahim, who is also finance minister. said in a press statement.
Under the new measures, the Paddy Cultivation Incentive (IPKP) for the 2026 planting season will be increased from RM160 to RM300 per hectare.
The increase involves an additional allocation of about RM40 million and is expected to benefit nearly 200,000 paddy farmers, some of whom will begin planting this month.
The government said it had also previously introduced a Harvest Incentive of RM50 per hectare per season to help ease rising input costs.
For diesel users, the Budi Agri-Komoditi and Budi Individual Diesel cash assistance will be raised from RM300 to RM400 per month for April 2026.
The payment will be disbursed on April 21, marking the second increase in the assistance since the crisis began.
Budi Agri-Komoditi is expected to benefit more than 200,000 farmers and smallholders, with an additional allocation of about RM20 million per month.
Budi Individual Diesel will benefit around 150,000 individual diesel vehicle owners in peninsular Malaysia, with an additional allocation of about RM15 million per month.
The Ministry of Finance said it expects to bear about RM7 billion in subsidies for April 2026, including an additional RM75 million for the expanded assistance programme.
The government has also agreed to ease rules on diesel purchases for non-vehicle use.
The requirement for a special permit for purchases exceeding 20 litres will be relaxed, allowing owners of agricultural machinery and equipment to buy higher volumes upon presentation of registration documents.
Detailed implementation guidelines will be issued soon, the ministry said.
The government, through the National Economic Action Council, will continue monitoring developments in West Asia and their impact on Malaysia, and said it remains prepared to introduce further measures if necessary.
