THE recent decline in brent crude oil prices to approximately US$76 per barrel from the highs of nearly US$100 per barrel recorded earlier this year should provide much-needed relief to households and businesses that have endured rising living and operating costs over the past several years.
According to MCA Economic and SMEs Affairs Committee chairman Datuk Lawrence Low, the drop in global energy prices should provide the government with an opportunity to ease financial pressures on consumers and businesses that have faced rising costs in recent years.
“If Malaysians are expected to bear the consequences of rising oil prices, they should also be able to enjoy the benefits when oil prices fall,” he noted.
The MCA vice president said many households continue to face higher living costs despite the moderation in oil prices, while businesses remain burdened by increasing operating expenses.
He attributed some of these pressures to the cumulative effects of subsidy rationalisation measures, the expansion of the Sales and Service Tax (SST) and broader cost pass-through effects throughout the economy.
Malaysia has in recent years implemented a series of fiscal reforms aimed at strengthening public finances, including targeted fuel subsidy initiatives and the expansion of SST coverage to additional goods and services.
According to Low, the current decline in international oil prices presents a timely opportunity for policymakers to reassess measures affecting household spending and business competitiveness.
He called on the government to review the implementation of fuel subsidy rationalisation to ensure that consumers and businesses can benefit more directly from lower global energy costs.
“Fiscal savings should not be viewed solely as a government gain but as an opportunity to support economic activity and improve living standards,” he remarked.
Low also urged the government to evaluate the cumulative impact of the expanded SST framework on both businesses and consumers.
“Tax reforms must be balanced against prevailing economic conditions and should support, rather than undermine, consumer spending and business growth,” he continued.
In addition, he proposed targeted assistance for sectors facing persistent cost pressures, particularly small and medium enterprises (SMEs), logistics operators and agricultural producers.
He said these sectors play a critical role in employment creation and domestic economic activity, and should be supported to maintain competitiveness.
Low stressed that fiscal sustainability and economic growth should not be treated as competing objectives.
“Strong public finances are important, but they should be achieved alongside improvements in household welfare, business competitiveness and economic opportunity,” he stressed.
He added that lower global energy prices provide the government with an opportunity to demonstrate that favourable market conditions can translate into tangible benefits for ordinary Malaysians.
“The government should seize this opportunity to ensure that the benefits of lower energy prices are felt by households and businesses alike, helping to create a more competitive economy and a better quality of life for all Malaysians,” he reiterated. ‒ June 19, 2026
