Amir said the savings are now projected to be between RM7.2 billion and RM7.5 billion annually.

He said the government had initially forecast annual savings of RM4 billion.

“The government is saving RM600 million a month. This shows that the measures we have implemented to reduce leakages and misuse are working effectively,” he told reporters on the sidelines of the Malaysia Economic Forum 2025 here today.

Amir said the government has been cautious in the system’s roll-out to ensure its efficacy and to avoid unintended consequences.

“We needed time to ensure the system was robust and well implemented. We are now seeing better results because we managed to address inefficiencies in the previous system,” he said.

He also said the new subsidy mechanism has not created undue inflationary pressures.

“This is important because any decision the government makes must consider the broader economic impact. We’ve managed to avoid inflationary pressures, which is a win for everyone,” he said.

The government rationalised diesel subsidies from the middle of last year to reduce the public’s financial burden and address issues like fuel smuggling.

To reduce the rationalisation’s impact on lower-income citizens, the government introduced targeted subsidies and cash assistance for eligible individuals and sectors.