GEORGE TOWN: The Entrepreneur Development and Cooperatives Ministry is targeting savings of RM20mil this year to support the government’s push for prudent spending amid global economic uncertainties.
Its minister, Steven Sim Chee Keong, said the move is in line with the Finance Ministry’s (MoF) directive to realign allocations for 2026, particularly involving operating expenditure.
"The savings do not involve development expenditure or public welfare, but will focus on government operational costs.
"For example, costs to be reduced include overseas travel, including at ministerial level; large-scale events and functions which will be minimised; as well as a temporary freeze on new hiring and reduced asset purchases as part of cost-saving measures,” he said.
He was speaking to reporters after a walkabout with Penang Chief Minister Chow Kon Yeow at the Pulau Tikus Public Market here on Sunday (May 3).
Sim said the measures are necessary as the world continues to face uncertainties, including oil supply disruptions, the energy crisis and prolonged geopolitical conflicts in the Middle East.
He said the government must ensure that public welfare is not affected and that the impact on the economy and businesses is minimised, while maintaining sufficient fiscal space to continue assisting such as subsidies, business development and welfare programmes.
At the same time, he said the ministry will maintain its development expenditure at RM750mil this year without any reduction, and remains committed to disbursing up to RM15bil in financing to support businesses, particularly micro, small and medium enterprises (MSMEs) and the corporate sector.
"This cost-saving exercise involves government spending, not the rakyat. In fact, we will continue to channel development and welfare funds to safeguard the people and the national economy,” he said.
MOF, in a statement on April 30, stressed that the operating expenditure adjustment guidelines involve only non-critical spending, while core expenditures, including basic services, security, healthcare and education, will continue as approved under Budget 2026. - Bernama
