Penang: The Domestic Trade and Cost of Living Ministry (KPDN) is advocating for continued focus on subsidy and consumer affairs allocations in Budget 2027, despite the government's fiscal constraints due to escalating fuel subsidy costs.

According to BERNAMA News Agency, Datuk Armizan Mohd Ali, the minister of KPDN, emphasized the necessity of these allocations to fulfill the ministry's duties, particularly in stabilizing the supply and prices of goods. The ministry is optimistic that subsidy allocations, including the Subsidised Diesel Control System (SKDS), cooking oil subsidies, and the Price Standardisation Programme for Sabah and Sarawak, will remain intact.

Armizan highlighted the challenge posed by the tripling of fuel subsidy costs, stating that although RM15 billion was initially allocated for fuel subsidies under Budget 2026, the actual fiscal requirement has approached RM40 billion. He relayed this information during the closing ceremony of the 2026 Jom Malaysia Festival at the Batu Kawan State Stadium in Penang.

KPDN has already submitted its applications and key concerns to the Ministry of Finance (MOF) for consideration in Budget 2027, aligning these requests with present needs and fiscal capabilities. The government's targeted subsidy reforms have ensured that subsidies continue to reach the public despite rising expenses.

Mechanisms such as SKDS and BUDI Diesel have facilitated the distribution of fuel subsidies to eligible groups, while the subsidised packet cooking oil programme persists despite an increase in crude palm oil prices. KPDN plans to collaborate with MOF and related ministries to ensure optimal and targeted use of allocations, yielding direct benefits for the populace.

Additionally, Armizan mentioned that the cost-of-living issue spans various ministries and will be discussed at the National Cost of Living Action Council (NACCOL) meeting, chaired by Prime Minister Datuk Seri Anwar Ibrahim. Through NACCOL's eight clusters, involved ministries will have the chance to propose new initiatives or enhance existing ones to tackle cost-of-living challenges.