00:00Malaysia plans to reduce its 2026 federal operating expenditure as rising costs linked to the Middle East conflict plays increasing
00:09pressure on public finances.
00:11Treasury Secretary General Dato' Johan Mahmud Merikan says surging energy prices raise living costs and significantly increase the government's subsidy
00:20burden.
00:20He warned that total subsidy costs could reach RM58.4 billion this year, far exceeding the RM15 billion originally planned
00:30for 2026.
00:31Therefore, he directed all ministries and federal bodies to reassess their operational spending and submit detailed proposals for budget reductions
00:39by May 15.
00:41The directive also outlined cost-saving measures, including tighter controls on salaries and allowances linked to unfilled or vacant government
00:50positions.
00:50It further proposed a 10% reduction in spending on services, supplies and assets across all government entities to contain
00:59rising fiscal pressures.
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