Anwar calms fears over spending realignment; Stresses health, education unaffected

PRIME MINISTER Datuk Seri Anwar Ibrahim has sought to calm public concern over the government’s planned fiscal realignment, insisting that recruitment in the health sector, including doctors and nurses, will not be affected despite ongoing efforts to rationalise expenditure.

He said there had been confusion over proposals to streamline government spending, stressing that essential public services such as healthcare and education remain fully protected.

“I want to clarify that the recruitment of new doctors and nurses is not affected. The construction of clinics is not affected, only the scope of luxury hospitals is reduced,” he said.

He made the remarks after attending the monthly assembly of the Ministry of Natural Resources and Environmental Sustainability (NRES) in Kuala Lumpur on Monday.

His comments come amid reports that the Ministry of Finance had proposed operating expenditure reductions amounting to RM5.4 billion involving the health and higher education sectors, as part of broader efforts to strengthen the country’s fiscal position amid rising subsidy pressures and global economic uncertainty.

Anwar acknowledged that Malaysia is navigating tighter fiscal conditions but said the government’s approach is to prioritise core services while reducing what it considers unnecessary or excessive spending.

Despite the adjustments under consideration, he gave assurances that key education infrastructure projects would continue unaffected, including the construction of new schools and classrooms to accommodate current student demand.

“Schools for the purpose of education, construction of new classrooms for current student intake are not affected,” he said.

He added that the government would take a stricter stance on what it views as non-essential expenditure, particularly overseas travel and high-cost administrative activities.

“Excessive spending on courses… if training is available locally, it should be done domestically, not overseas.

“Events at luxury hotels will be stopped and instead held at ministries,” he said.

The Prime Minister’s remarks are aimed at reinforcing confidence that fiscal consolidation measures will not undermine essential public services, as Putrajaya moves to balance budget discipline with continued investment in key national priorities. - May 4, 2026