Misleading post claims Malaysian government “removed gas subsidies for all businesses”
Malaysia has not yet completely banned commercial use of subsidized culinary gas, contrary to the misleading claims expanded by opposition politicians who accused the government of “robbing” citizens. Authorities launched an action to curb subsidies in the commercial and industrial sectors, rather than households or small businesses, and these positions surfaced. The government said new policies or regulations on subsidies to natural gas have not been implemented.
“The government has lost its mind. The petrol subsidies for businesses have been cancelled. Small business owners feel they can’t raise prices again after multiple cost increases.”
Screenshot of fake posts taken on June 3, 2025
Following the domestic trade and living ministry cost (KPDN), the claims announced a five-month action starting May 1 to curb the use of subsidized liquefied petroleum gas (LPG) in the commercial and industrial sectors and to undermine illegal dislocation activities (archive link).
It also said businesses will no longer be allowed to use subsidized cooking gases and will need to switch to commercial cylinders, which is three times the price of household cylinders (archive link).
The launch of the action prompted lawmakers to claim that it would lead to small businesses raising prices for consumers, a government MP called it a government “robbery.”
Similar claims are shared elsewhere on Facebook and in groups with more than 35,000 members.
Comments left by users indicate they were misled, and some say, “The current government is not helping people, but adding to the burden.”
Another said: “The government has gone too far.”
However, the business is not targeted at small businesses.
No subsidy cancellation
KDPN Minister Mohd Ali refuted the misleading claim in a statement issued on June 3 through the state news agency Bernama, saying the main purpose of the operation is to combat illegal tilt activities, illegal tilt activities in LPG transport and the use of subsidized natural gas (archive links) for large and medium-sized industries (archive links).
“Through this action, there are no new policies and regulations, let alone cut the LPG subsidies requested by some parties,” the statement said.
Instead, small businesses using fewer than three cylinders a day can continue to use cheaper products, while larger commercial operations use more than three at a time require licenses and cannot purchase subsidized gas, the minister said.
The Communications Department Information Department posted a similar clarification on Facebook on May 31 (archive link).
Penang Eagles Association president ooi thean Huat told AFP that small businesses in the northern states usually only need up to three gas cylinders a day, allowing them to use subsidized 12kg cylinders that are sold for 26 ringgit ($6).
However, OOI notes that even switching to unsubsidized cylinders will not cause a price increase for customers.
“If we use non-replenished cylinders, there should be enough two per day. Food prices won’t change because you do get more gas using commercial cylinders,” he said.
