Malaysia has increased the electricity consumption threshold eligible for household subsidies from 600kWh to 800kWh per month, Prime Minister Anwar Ibrahim announced. This adjustment, effective until December 31, aims to alleviate the financial burden on households grappling with increased electricity use due to recent hot weather and haze conditions.
Under the new policy, domestic users consuming up to 800kWh monthly will be exempt from the Automatic Fuel Cost Adjustment (AFA), along with related retail charges and the Sales and Service Tax (SST). The AFA, introduced in July 2025, adjusts electricity charges based on fluctuating fuel prices, which can lead to either rebates or additional charges for consumers.
Prime Minister Anwar emphasized that the government will continue to monitor fuel prices and energy market conditions closely. This is to ensure that electricity tariff policies maintain a balance between household affordability, energy supply security, and the long-term sustainability of the energy sector.
The decision to raise the subsidy threshold comes as families face higher electricity expenses, driven by increased consumption during periods of extreme heat and haze. The Malaysian government hopes that this measure will provide some financial relief to households during these challenging times.