The directive proposed several cost-saving measures including restrictions on salaries and allowances for unfilled vacancies, a 10 per cent reduction on services, supplies and assets, and a 20 per cent cut on budgets for statutory bodies and companies limited by guarantees.
Communications Minister Fahmi Fadzil confirmed the directive, adding that there were no plans by the government to re-submit its 2026 budget to parliament for now.
„This is … in line with the government’s intention to streamline programmes and their implementation, as Malaysia faces challenges arising from the global supply crisis,“ Fahmi, who is also government spokesperson, told a regular press briefing.
Fahmi said national oil firm Petronas had assured that the country’s energy supplies were sufficient for May and June, though the government remains concerned about rising prices for fuel products including petroleum and diesel.
The finance ministry said in a separate statement on Wednesday that expenditure adjustments will not affect critical public services or economic stability.
It also said that ministry and agencies have been directed to restructure operating expenditure priorities in response to global supply crunch and rising subsidy costs, reported local news outlet New Straits Times.
„This step is aimed at ensuring government resources are managed efficiently so that assistance to the rakyat (people) can be sustained on an ongoing basis,“ the statement said.
The finance ministry said it now costs the government RM7 billion a month to fund fuel subsidies and other aid measures, a 10-fold increase from its spending prior to the outbreak of the conflict in late February.
