Two-thirds of the amount, or RM51 billion, is for essential supplies such as petrol, diesel, cooking oil, flour and electricity, and other necessities.

Tengku Zafrul said the projected total includes RM5.8 billion in electricity subsidy for the second half of 2022, to ensure there is no increase in the electricity tariff after July 1.

He said the energy subsidies, for petrol, diesel, and electricity, would also benefit people in the M40 (middle-income) and T20 (top-income) groups.

About 15% of the total amount, or RM11.7 billion, is for welfare assistance, such as cash aid under the Bantuan Keluarga Malaysia scheme, and the balance of RM14.6 billion is used for other types of subsidies.

The finance minister said the total amount also includes an increase in Bantuan Keluarga Malaysia cash aid, which now amounts to a total of RM1.74 billion.

Tengku Zafrul said the government’s commitment to the huge amount of subsidies was to reduce the cost of living, amid the sharp increase in fuel costs.