May 6, 2026
PETALING JAYA – Rising fiscal strain from the prolonged Middle East conflict has led the government to intensify cost-of-living support measures for the people, says Prime Minister Datuk Seri Anwar Ibrahim.
At a press conference yesterday, Anwar said padi farmers will receive an advance of RM200 per hectare under the ploughing and harvesting incentive to ease the rising costs.
He said the decision, made at the National Economic Action Council meeting yesterday, takes into account the need for padi farmers to rent machinery and ensure the ploughing programme continues without disruption.
He said the measure will cost the government RM48mil and is expected to benefit some 240,000 registered padi farmers nationwide.
“They are required to rent ploughing machinery, and the programme must continue, but it requires upfront capital.
“Therefore, the government believes it is appropriate to provide an advance of RM200 per hectare so that planting activities can proceed smoothly,” he said.
Last month, Agriculture and Food Security Minister Datuk Seri Mohamad Sabu said the government will increase the Ploughing Incentive for Padi Farmers (IPKP) from RM160 to RM300 per hectare.
Anwar said the prolonged Middle East conflict has strained government finances, noting that despite aid and diesel subsidies, Putrajaya is now shouldering an extra RM5bil a month in spending.
He, however, said the government must continue to confront these challenges and do its utmost to ease the burden faced by the public, particularly those who are relatively less well-off, poor and vulnerable.
On a related note, Anwar urged local authorities and state governments to cut rental rates for small businesses to ease rising cost pressures, with reductions to take effect this month.
He said this follows growing concerns over financial strain faced by small-scale traders, many of whom operate from premises owned by local councils and government-linked agencies.
“Within our means, the first step is to reduce rental rates. Most of these premises are owned by government-linked companies or agencies such as Majlis Amanah Rakyat (Mara) and UDA Holdings Bhd, which from this month will begin reducing rental rates for all small business premises under their management.
“This also falls under the jurisdiction of local authorities and state governments, and I urge them to act swiftly, with reductions taking effect this month, to ease the financial pressure faced by these traders,” he said.
The Prime Minister also instructed that the Madani Rahmah Sales Programme be further expanded in all states on a weekly basis as part of ongoing efforts to reduce the cost of living.
He said the initiative, which is currently managed by the Domestic Trade and Cost of Living Ministry, has already helped lower prices of essential goods by up to 30% below market rates.
“Last year, the government implemented more than 25,000 Jualan Rahmah programmes across all state constituencies in the country.
“I would like this to be implemented immediately, and for 2026, we have announced 30,000 programmes.
“This means an expansion in scale to cover all state constituencies, and to be held at least once every week, allowing buyers to know where goods are available, on fixed days and schedules.
“We also want to ensure the programme is held not only in urban areas but also in selected rural and village areas,” he said.
He added that the initiative also aims to ensure small businesses and traders are involved and benefit from it.
“We do not want this to become a platform for large companies, but rather to ensure the benefits of the programme provide opportunities for small traders to sell their goods at more affordable prices,” he said.
Meanwhile, the Royal Malaysian Air Force (TUDM) has been instructed to intensify cloud seeding operations in response to the prolonged dry spell affecting parts of the northern region.
Anwar said the situation in states such as Kedah has been exacerbated by an unusually long dry season, causing difficulties for plantations and padi farmers.
“We have instructed cloud seeding to be stepped up by TUDM, and I have also asked the Fire and Rescue Department to continue its operations within its capacity,” he said.