Cost-cutting measures not meant to halt official travel, but to manage rising subsidy costs, says MO

PUTRAJAYA, June 25 — The government’s ongoing cost-cutting measures are not intended to halt all official travel or government spending, but rather constitute a targeted fiscal management approach to absorb rising subsidy costs following the increase in global oil prices, the Ministry of Finance (MOF) said in a statement today.

It said that the sharp rise in global crude oil prices due to the crisis in West Asia had significantly increased the country’s subsidy expenditure.

“To help finance part of these additional subsidy costs, MOF has issued guidelines on government cost-cutting measures.

“Among the measures implemented is restricting official overseas travel to only scheduled commitments, mandatory meetings, and matters that are truly important and have a strategic impact on the country,” the statement said.

MOF issued the statement in response to a report by a portal that questioned official overseas visits while cost-cutting measures were being implemented.

According to the statement, the measures have been introduced without affecting critical services for the public, particularly in the health and education sectors.

“Although the Ministry of Health (MOH) is also subject to the cost-cutting measures, such as restrictions on official overseas travel, there are no limitations on workforce planning, the procurement of medicines, the acquisition of medical equipment, or the delivery of healthcare services to the public.

“In fact, amid uncertainties in the global supply chain, MOH and the National Economic Action Council have conducted a rapid audit to ensure that supplies of medicines and critical medical equipment remain sufficient and that any risk of disruption can be identified at an early stage,” the statement said.

For 2026, the statement said MOH was targeting the appointment of more than 18,000 healthcare personnel, comprising 4,500 medical officers, more than 3,500 nurses and nearly 1,000 assistant medical officers, in line with the original plan and without any reduction compared to last year.

“The allocation for medicines has also been increased to RM6.5 billion this year, compared with RM6 billion last year,” it said, adding that this proved that the cost-cutting measures did not affect the government’s priority in ensuring that the people continue to receive quality healthcare services.

Elaborating further, MOF said there were official visits that could not be postponed as they involved the country’s strategic interests, especially when the global situation continued to face geopolitical uncertainties and supply disruptions.

According to the statement, Prime Minister Datuk Seri Anwar Ibrahim’s working visits to Turkmenistan and Russia recently have yielded results in strengthening the country’s energy supply security and diversifying Malaysia’s long-term energy supply sources while the global market remains uncertain.

“Similarly, Malaysia’s participation in various international meetings and forums related to trade, energy, health, defence and regional cooperation is important to safeguard the country’s interests, strengthen relations with strategic partners and ensure Malaysia continues to have access to supplies, investments and economic opportunities.

“Therefore, official visits should not be assessed based solely on the number of trips, but rather on the purpose, necessity and outcomes achieved for the country and the people,” according to MOF.

The statement also said the MADANI Government remained committed to managing the country’s finances prudently, whereby controllable spending was tightened while critical sectors such as healthcare, education, subsidies and assistance for the people continued to be safeguarded.

“This approach ensures every ringgit is used optimally to face global challenges, while protecting the people’s welfare and the country’s economic stability,” it said. — Bernama