Anwar said the nation would not be in a better position if Putrajaya does not get cracking on “tough yet rational” measures.

“This stability is not for us to get comfortable, no. Stability gives us the opportunity to implement institutional reforms and unpopular yet important policies to ensure the nation’s success.

“Without taking these difficult steps, we cannot achieve success. Although it’s economically rational, it’s politically difficult,” he said at a dinner organised by the National Chamber of Commerce and Industry of Malaysia here tonight.

Anwar, who is also the finance minister, said this included measures like raising electricity tariffs and targeted subsidies, adding that these were necessary “to save the country”.

Putrajaya had allocated RM64 billion for subsidies in 2023 but spent RM81 billion, 26% higher than projected, because of the rise in fuel prices amid the Ukraine-Russia war.

In May, Anwar said Putrajaya would save around RM4 billion a year with targeted diesel subsidies, which began on June 10.

This saw the price of diesel fixed at RM3.35 per litre in Peninsular Malaysia, with the price maintained at RM2.15 per litre in Sabah, Sarawak and Labuan.

Subsidies are being distributed to those who are eligible through the Budi Madani initiative and fleet cards under the subsidised diesel control system.