‘Public welfare not affected’

Assuring move: (From right) Sim and Chow distributing reusable bags during the walkabout at Pasar Pulau Tikus in George Town. — LIM BENG TATT/The Star

GEORGE TOWN: The Entre­pre­neur Development and Coopera­tives Ministry aims to save RM20mil in operational expen­diture this year.

Its minister, Steven Sim, who disclosed this, said the measure was necessary due to global uncertainties arising from the ­situation in the Middle East, as well as the oil supply and energy crisis.

He said the austerity exercise would, however, not affect deve­lopment expenditure, including programmes benefiting the people.

“The measures include cuts in overseas travel, including at ministerial level, fewer large-scale events and functions, a temporary freeze on hiring, and lower asset purchases.

“If meetings can be done online, then overseas travel should be reduced.

“If overseas trips are unavoidable for important meetings, then the number of delegates and duration should be minimised,” he told reporters after a walkabout with Penang Chief Minister Chow Kon Yeow at the Pulau Tikus market here yesterday.

Sim said the cuts followed the Finance Ministry’s directive on cost-saving measures.

Reiterating that public welfare would not be affected, he said fiscal space for assistance, including subsidies, business development and welfare programmes would be maintained.

“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, mainly micro, small and medium enterprises, and the corporate sector,” he said.

Sim said the cost-saving exercise involved only government spending.

“We will continue to channel development and welfare funds to safeguard the people and nat­io­nal economy.

“We remain committed to spending the allocation to protect the people and the economy,” he said.

Sim said the government was also facing rising subsidy commitments, with the Finance Ministry estimating an increase from an initial RM15bil to RM58bil.

“That is why the government is forced to carry out savings.

“We will ensure the welfare and rights of the people are not affected, and that the impact is minimised,” he added.