IT’S a matter of time. The consequences of the energy crisis are coming in waves. Malaysia has officially entered a very difficult phase: The fallout of the war waged by the United States and Israel against Iran.
While that political drama is still ongoing with no clear “winner”, more worrying is the state of the nation given that the geopolitical crisis that is causing the energy crisis and its far-reaching consequences is expected to continue for the foreseeable future. The Middle East conflict, which started on Feb 28 when Iran was attacked, shows no sign of ending soon.
So when Finance Ministry secretary-general Datuk Johan Mahmood Merican issued a memo this week saying that the National Budget Office (NBO) has been directed to review the 2026 federal expenditure through budget readjustments, it was widely anticipated within the civil service.
Ministries, departments, and agencies have been instructed to re-prioritise spending and submit operating expenditure savings proposals to the NBO by May 15. Among the measures proposed is a temporary freeze on the recruitment of new civil servants and the creation of new posts in the public sector.
“The announcement was sudden, which means we have entered a very difficult phase of the crisis,” said a senior government officer.
“But look at it this way, it is temporary. We should focus on stabilising government finances and assisting the needy. Short-term sacrifice for long-term sustainability.
“Once the economy recovers, then we can reinstate those projects,” he said.
Another senior official explained that ministries must identify critical areas and manage finances during this phase.
“They need to plan for what could happen in the next phase. It is crucial that we survive in the long term without incurring long-term debt,” he added.
Time will tell how these cuts will affect the rakyat.
As we brace for more bad news, we can’t help but question if the government is doing enough to explain to the people the effects of geopolitical instability and ongoing regional conflicts, including the Strait of Hormuz blockade which has led to supply disruptions and a rise in global crude oil prices.
These external factors have increased logistics, transportation, and insurance costs, driven up energy prices, and contribute directly to higher living costs.
When the conflict began in February, Prime Minister Datuk Seri Anwar Ibrahim did warn people about what was coming. But the country was in the mood to celebrate Hari Raya then.
The prime minister, Cabinet members, and government officials even attended open houses in some states, which is ironic since the Federal Government discouraged open houses by ministries. For a while, many of us “forgot” the problems headed our way.
To be fair, National Economic Action Council (NEAC) meetings swung into action quickly. Meetings chaired by the prime minister are held on Tuesdays, and the resulting proposals are presented to the Cabinet for endorsement the next day.
Three Cabinet members were given the task of briefing the media on the proposals: Akmal Nasrullah Nasir (Economy Minister), Datuk Fahmi Fadzil (Communications Minister and Government Spokesperson), and Datuk Seri Fadillah Yusof (Deputy Prime Minister II).
Is it due to media fatigue that these briefings are not generating much “excitement” or ringing alarm bells among the people?
This is much unlike during the height of the Covid-19 pandemic in 2020-2021 when many of us were glued to the TV for the daily government briefing, or even the press conferences held after flight MH370 went missing in 2014.
Back then, nobody wanted to hear bad news but we were ready for it. Information dissemination was coordinated, ensuring everyone was on the same page. There was some semblance of clarity.
This time we have various Cabinet ministers and even former ministers pontificating on the conflict and its ripple effects, but without a clear plan on how the country will adapt to a prolonged energy crisis down the road.
We don’t need a minister taking to Facebook and asking Malaysians if they are ready to face an uncertain world after talks between Iran and the US failed (again).
We get that the government is trying to avoid creating panic, but as we enter the third month of this conflict surely everyone knows what’s happening!
We are now dealing with external circumstances beyond our control. What is the government doing to mitigate the impact and ease the rakyat’s hardship? How do we prepare for the worst case scenario? What is that worst case? How will Malaysia survive in an era of fossil-fuel shortage?
“For example, it is not about putting RM500 in people’s pockets. The issue is not about the money.
“This time it is not about a financial crisis. This is an energy crisis in which you may have money but won’t find products on the shelves to spend it on in the near future,” said an editor.
The government needs a spokesperson who can properly brief the media and get its narrative out there.
One person who should be considered is Tan Sri Hassan Merican, chairman of the Crisis Management Task Force that was formed under the NEAC to coordinate government efforts to address the energy crisis.
Hassan, who also heads the Special Advisory Body to the Finance Minister, is responsible for reviewing on a daily basis the actions that need to be taken.
An editor who attended a recent media briefing by Hassan said the former PETRONAS CEO’s words carry a lot of weight.
Malaysians need to know the truth. There should be no sugarcoating.
This is not the time to play politics or get ready for the next general election. This is about whether this government can navigate Malaysia through the challenges of this energy crisis.
