Kuala lumpur: The government's decision to tighten control over non-critical spending, including holding official events on a modest scale, demonstrates a proactive approach and fiscal discipline that could strengthen the country's economic resilience amid geopolitical uncertainty and global economic pressures.
According to BERNAMA News Agency, public policy expert Dr. Asiyah Kassim from Universiti Teknologi MARA (UiTM) highlighted that this approach is timely, given the increasingly challenging global uncertainty. She noted that it represents a two-pronged strategy to optimize public financial resources without compromising the quality of public service delivery. Dr. Asiyah emphasized the importance of accurately targeting non-critical expenditure cuts to maintain essential services and efficiency, stressing the need for transparent implementation.
Dr. Asiyah further commented on the significance of reducing official visits and implementing Work From Home (WFH) policies, stating that such measures send an important signal in building policy legitimacy among the public. The signaling effect, she argues, demonstrates inclusive cost-saving measures adopted at the leadership level.
Meanwhile, Dr. Aimi Zulhazmi Abdul Rashid from Universiti Kuala Lumpur Business School described the government's proactive measures as crucial amidst a constrained fiscal environment, with debt levels nearing 65% of GDP. He suggested rationalizing the budget by distinguishing between operating and capital expenditure, urging protection for key sectors like health, defense, and food and energy security to support long-term growth. He believes such prudence will boost confidence among investors and international financial institutions.
Social activist Tan Sri Lee Lam Thye also supported the government's move, advocating for cost cuts without compromising basic human welfare. He emphasized the need for an austerity drive across all ministries and agencies to avoid wastage and ensure no leakage or corruption of public funds.
Previously, the Finance Ministry issued guidelines on adjusting operational expenditure to ensure alignment with the government's intention of prudent spending. This measure is part of a broader fiscal management approach to sustain support for people facing rising living costs. Prime Minister Datuk Seri Anwar Ibrahim's directive for scaling down official events is expected to promote more responsible governance in the public sector.