THE government’s decision to reduce expenditure by RM5.7 billion has been described as a bold and necessary step to curb wastage in non-critical sectors, amid rising global subsidy costs now reaching RM5 billion monthly.
In a statement, PKR’s Deputy Secretary-General Bryan Ng Yih Miin said the move by Prime Minister Datuk Seri Anwar Ibrahim is not a cut to public welfare, but rather a prudent fiscal strategy aimed at ensuring long-term economic stability.
He stressed that the government remains committed to safeguarding essential services and public welfare under the Madani administration.
“The government has placed economic stability as its priority without compromising basic needs. There are no changes to core services — hospitals continue to operate as usual, cash assistance remains in place, and the welfare of the people continues to be the government’s main pillar,” he said.
Focus on Non-Critical Expenditure
Ng clarified that the spending reduction targets only non-essential areas to avoid public confusion. These include administrative and protocol costs such as official events, overseas visits, and promotional materials, which will now be streamlined through digitalisation.
Delayed development projects, particularly new construction or office refurbishments that do not impact daily public operations, will also be postponed. Additionally, unutilised allocations within ministries will be reassessed and reallocated more efficiently.
Training programmes and conventions are expected to shift online to reduce organisational costs, while the hiring of non-critical administrative positions will be temporarily frozen.
However, this does not affect key roles such as doctors, nurses, and teachers.
Core Services Remain Untouched
Ng gave assurances that critical public services and assistance programmes will not be affected by the cuts.
These include healthcare services, access to medication, scholarships, PTPTN education loans, Sumbangan Tunai Rahmah (STR), and targeted aid for the B40 group.
“The government guarantees that this expenditure rationalisation will not compromise the people’s basic needs.”
“Healthcare services and medicine supplies will continue uninterrupted, while students’ access to education will be preserved through ongoing scholarships and PTPTN funding,” he added.
Fiscal Responsibility and Economic Stability
Ng outlined several reasons why the move should be supported, starting with fiscal responsibility.
He said the rationalisation effort aims to eliminate inefficiencies and overlapping projects, ensuring taxpayers’ money is spent with integrity.
He also highlighted the importance of managing the national deficit to prevent a downgrade in Malaysia’s credit rating, which could lead to higher borrowing costs and increased cost of living for the rakyat.
The shift from blanket subsidies to targeted subsidies was also described as a fairer approach, ensuring that assistance reaches those who truly need it rather than benefiting higher-income groups.
“This financial discipline will also strengthen the ringgit and boost investor confidence,” he added.
Meanwhile, Ng noted that the government is exploring more creative funding mechanisms, including public-private partnerships (PPP) and trust funds, to support development spending without placing additional strain on public finances.
Recommendations for Implementation
To strengthen the effectiveness of the strategy, Ng proposed several measures, including greater corporate responsibility among government-linked companies (GLCs) to support community projects affected by delays.
He also called for the publication of biannual transparency reports detailing savings and fund reallocations, as well as audits to identify operational inefficiencies that can be addressed through technology.
Additionally, he suggested allocating part of the savings to support micro-entrepreneurs and gig workers in navigating global economic uncertainties. – May 4, 2026
