Kuala lumpur: The Entrepreneur Development and Cooperatives Ministry (KUSKOP) is aiming to achieve savings of RM20 million this year to aid the government's initiative for prudent spending in light of global economic uncertainties. Its minister, Steven Sim Chee Keong, stated that this initiative aligns with the Finance Ministry's (MoF) directive to realign allocations for 2026, particularly focusing on operating expenditure.

According to BERNAMA News Agency, the savings plan will not affect development expenditure or public welfare but will instead concentrate on reducing government operational costs. Measures to achieve these savings include cutting down on overseas travel at ministerial levels, minimizing large-scale events and functions, imposing a temporary freeze on new hiring, and reducing asset purchases.

Sim emphasized the necessity of these measures due to ongoing global uncertainties such as oil supply disruptions, the energy crisis, and prolonged geopolitical conflicts in West Asia. He assured that the government aims to ensure public welfare remains unaffected and that the economic impact on businesses is minimized while maintaining sufficient fiscal space for subsidies, business development, and welfare programs.

Sim also mentioned that KUSKOP would maintain its development expenditure at RM750 million this year without any reduction. The ministry remains committed to providing up to RM15 billion in financing to support businesses, particularly targeting micro, small and medium enterprises (MSMEs) and the corporate sector. He clarified that the cost-saving exercise focuses on government spending and not on the general public, emphasizing continued support for development and welfare funds to protect the people and the national economy.

The MOF, in a statement on April 30, reiterated that the operating expenditure adjustment guidelines pertain only to non-critical spending, whereas core expenditures, including basic services, security, healthcare, and education, will proceed as approved under Budget 2026.