PENAMPANG — Cost-cutting measures have been implemented across ministries and the savings redirected to people-centric programmes and initiatives, Prime Minister Datuk Seri Anwar Ibrahim said today.
He assured that non-essential spending was being reduced, while critical sectors such as education, healthcare and allocations for basic infrastructure are spared.
Non-essential spending includes ministers’ overseas trips, except for mandatory meetings under international platforms such as ASEAN, BRICS and APEC, Bernama reported him saying.
“All study visits and similar trips have been cancelled at the federal level. Even for official visits, if a delegation previously consisted of six people, it is now reduced to two. If the accommodation was a Royal Suite, it is now downgraded to a Junior Suite,” he said.
Apart from overseas travel, Anwar, who is also Finance Minister, said government training programmes are now being held at government-owned facilities instead of luxury hotels.
“If we do not exercise wisdom and prudence in spending, the country cannot be saved. The money we save is channelled back to the people,” he said.
Speaking at the Kaamatan Festival 2026 celebration at Hongkod Koisaan, the headquarters of the Kadazandusun Cultural Association (KDCA), here today, Anwar assured Sabahans that allocations for education, healthcare and basic infrastructure for the state would not be touched.
Also present were Chief Minister Datuk Seri Hajiji Noor, Deputy Chief Minister I Datuk Seri Dr Joachim Gunsalam, who is also chairman of the Sabah Kaamatan Festival 2026 organising committee, and KDCA president Tan Sri Joseph Pairin Kitingan.
Anwar said savings generated through cost-cutting measures and the recovery of funds had enabled the government to channel RM15.5 billion back to the people through various initiatives, including the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) programmes.
The funds have also been used for the repair school toilets at an additional cost of RM1 billion, as well as the immediate distribution of RM100 book vouchers to all school and higher education students nationwide, he added.
Yesterday, when officiating the Kuala Lumpur International Book Fair 2026, Anwar spoke of making broader cost-cutting measures in Budget 2027.
He said cuts were necessary as continuing geopolitical instability, had affected the global economy and necessitated more prudent government spending.
Malaysia, too, could not escape the impact on its economy from attacks by the United States and its ally Israel on Iran, he added – May 30, 2026