Is RM10b Spent to Win Votes?

 

Midway through his first-ever term as Prime Minister, Anwar Ibrahim has shown himself to be a populist politician. This is evident with the latest handouts which was estimated by P Gunasegaram at RM10 billion (see table below).

 

The Sabah state election has to be held at the latest by December this year or January next year, some six months away which may have motivated this largesse. 

The RM100 handout is NOT a targeted subsidy - it goes to everyone above the age of 18, also the voting limit. The question is, why was it not limited to those who truly deserve it? 

From official figures and estimates, the percentage of the population above 18 can be put quite accurately at above 70 percent. From a total population of 34 million, that amounts to 23.8 million people. The total bill will be RM2.38 billion, of which only 20 percent or RM476 million will go to the needy, while RM1.913 billion will go to people who mostly don’t need it.

 

Anwar said it will amount to RM2 billion, the figure we shall use, presumably because he expects a significant number of eligible voters not to accept. Still, it’s always nice to have a handout. If there is a household of five, of whom, say, three are over 18, an RM300 angpow at the right time, close to voting, as in the case of Sabah, is nice - that much more groceries.

On RON95 at RM1.99 a litre and no toll increase, many had thought oil subsidy rationalisation was a cornerstone of Malaysia’s economic restructuring. What happened? It does not fuel inflation but alleviates transport costs and other related expenses. 

Delaying toll increases basically means that the government will pay the toll operators for the delay. Anwar estimates this at RM500 million. 

A day off - Sept 15, a Monday - will give Malaysians a long weekend as Sept 16 is Malaysia Day. But what will it cost Malaysia? We could estimate that it could be at least RM5 billion - the loss of gross domestic product at current prices. 

Total it all up, and the cost of populist measures is RM10.1 billion. Personally, PMX’s credibility and stature would soar if he focused on meaningful reforms especially those that are deemed as “low hanging” fruits. And he knows them, as “king” of reformasi. But why the delay? UMNO? Najib? He has not handled well on corrupt politicians, who have got away with DNAA! The philosophy of return some of your stolen loot and we will go light (or easy) on your sentence is not a great idea! No sane person can subscribe to that!

 

Reference:

COMMENT | Anwar's injudicious RM10b waste to curry voter favour, P Gunasegaram, Malaysiakini, 25 July 2025