The government will be taking austerity measures to save public expenditure by postponing or not continuing any project that has yet to commence, said Minister in the Prime Minister’s Department (Economy), Datuk Seri Mustapa Mohamed.
According to Bernama, he said this move will enable the government to channel more money for the welfare of the people, apart from efforts toward the country’s economic recovery.
He added that this is a directive issued via the Malaysia Treasury Circular – Guidelines on Public Expenditure Savings.
“I have held meetings with the Public Works Department (PWD) and the Implementation Coordination Unit (ICU) on the financial position, to see the projects that have yet to commence.”
“Hence, if it (project) is just about to start, there is no need to continue, while if something has already started, we will discuss which developments we need, either to defer or cancel,” he said.
Last Friday (15 July), it was reported that all ministries, departments, agencies, federal statutory bodies and companies limited by guarantee (CLBG) were instructed, via the Malaysia Treasury Circular, to implement internal austerity measures by optimising expenditure.
Healthcare services not affected
Meanwhile, Health Minister Khairy Jamaluddin assured Malaysians that healthcare services will not be affected by measures listed in the Malaysia Treasury Circular.
He said that the austerity measures implemented by his ministry only involved protocol matters, attires and banquets (majlis jamuan).
“I can assure you that this Treasury Circular (internal austerity measure) does not affect healthcare services as well as medicines.”
“The savings will not (affect) our health services, medicines and so on. We will not reduce them (the funding of these things) .”
“We will make cuts (save) on things that do not involve health services, such as protocols, banquets and shirts. Should there be any function, do it at your own facility. You don’t have to rent a hotel, you don’t need luxury catering, that’s what we are going to do,” he said.
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