Malaysia has increased the monthly electricity consumption threshold eligible for household subsidies from 600kWh to 800kWh, a change that will remain in effect until December 31, Prime Minister Anwar Ibrahim announced. This adjustment aims to alleviate the financial burden on households amid rising electricity usage due to hot weather and haze conditions.
The revised threshold means that domestic users consuming up to 800kWh per month will benefit from exemptions on the Automatic Fuel Cost Adjustment (AFA), retail charges, and the Sales and Service Tax (SST). This move is part of the government’s broader strategy to manage energy costs for consumers while maintaining supply security and sector sustainability.
Prime Minister Anwar emphasized the government’s commitment to closely monitor fuel prices and energy market dynamics to ensure that electricity tariff policies remain balanced. The AFA mechanism, which was introduced in July 2025, adjusts electricity charges monthly in response to fluctuating fuel prices, potentially resulting in either rebates or additional charges for consumers.
This policy shift comes as many Malaysian households face increased electricity demands, partly driven by the country’s recent extreme weather conditions. By raising the subsidy threshold, the government aims to provide more financial relief and support consumer affordability.