PUTRAJAYA: The Housing and Local Government Ministry will comply with government-wide spending cuts while ensuring that development projects remain unaffected, says its minister Nga Kor Ming.
Nga said the ministry supports the Finance Ministry’s move to reprioritise RM10bil in government expenditure.
“We are prepared to implement savings measures without compromising development spending, so that the people’s wellbeing and national development agenda remain on track,” he said in a statement on Thursday (April 30).
Nga said the recalibration exercise was necessary to strengthen the country’s fiscal position, noting that subsidies this year are expected to exceed RM58bil, compared with RM15bil initially projected before the global energy crisis.
He added that the continued conflict in the Middle East has disrupted global oil supply chains and driven up international crude oil prices, directly impacting the cost of living.
“For this reason, restructuring expenditure is crucial to ensure the government has sufficient fiscal space to continue assisting the rakyat, especially in facing global economic challenges and rising living costs,” he said.
Under Budget 2026, the ministry was allocated RM2.07bil for operating expenditure and would identify savings of RM64.4mil in line with the Finance Ministry’s proposal.
Nga said cost-saving measures would include postponing non-essential official events, meetings, conferences, seminars and workshops, while necessary programmes would be scaled down.
Overseas trips by the minister and officials would also be limited to essential engagements, adding that frontline services and basic public services would not be affected, he added.
