KUALA LUMPUR: Datuk Seri Anwar Ibrahim has indicated that ministries may face budget reductions under Budget 2027 as the government seeks to strengthen fiscal discipline amid global economic uncertainties, while stressing that investments in education quality and infrastructure will remain a priority.
The Prime Minister said all ministries, including the Education Ministry and Higher Education Ministry, would be expected to identify areas where spending could be reduced, adding that savings could be achieved without compromising key national priorities.
“Don’t take things for granted when I make new decisions. Yes, we have asked all ministries, including the Education and Higher Education Ministries.
“Beg all you want, but there must be reductions in spending the budget.
“Out of RM20bil, it is impossible that nothing can be saved. There are many areas where costs can be reduced,” Anwar said in his speech when launching the Kuala Lumpur International Book Fair here on Friday (May 29).
Despite calling for fiscal discipline, Anwar stressed that efforts to improve the quality of education and educational facilities at schools and universities would continue uninterrupted.
“On matters concerning the quality of education and basic educational facilities, whether in schools or universities, God willing, we will continue without disruption,” he said.
He urged ministers and senior civil servants to adopt a broader perspective when planning expenditure, saying ministries could no longer operate in isolation and focus solely on their respective portfolios.
“Everything is important. National unity is important, culture and sports are important, science and technology are important.
“But amid all these priorities, there must be wisdom and understanding of the macroeconomic situation,” he said.
Anwar said ministries should identify inefficiencies, address weaknesses and reduce costs where necessary while setting spending priorities based on the country’s overall needs.
“This is the time for us to use wisdom in choosing according to the order of priorities,” he said.
The Prime Minister said Malaysia recorded one of the strongest economic performances in Asean and Asia during the first quarter of the year despite global uncertainties stemming from conflicts in the Middle East.
He said the conflict, triggered by what he described as an attack by the Israeli regime with the assistance of the United States, had affected regional security and economic conditions, including Malaysia’s economy.
While assuring Malaysians that the country had sufficient crude oil and diesel supplies and strong ties with major energy producers such as Saudi Arabia, Anwar warned against taking the economic impact of global tensions lightly.
“Despite the problems we have encountered, which Alhamdulillah we are able to manage, we still have to deal with issues of spiralling prices.
“But I assure Malaysians that we will deal with them wisely, and the focus on education cannot be compromised,” he said.
