Indonesia and Malaysia Align on Option to Cut Ministers' Salaries for Budget Efficiency

Malaysia’s Prime Minister Anwar Ibrahim has opened the possibility of salary cuts for ministers if the crisis in the Middle East deteriorates further and exerts greater pressure on the country’s economic conditions. Anwar made this statement when approached by media after prayers at Surau Bomba in Cyberjaya on 17 April 2026. He stressed that such a step could be considered if the economic situation becomes more challenging. However, Anwar also assessed that ministers’ current salaries are already relatively low, and the most important aspect is how they perform their duties well for the people. “The key is that they serve well,” said Anwar Ibrahim, as quoted from The Straits Times on Sunday, 19 April 2026. This statement came after Anwar was asked whether Malaysia would follow Indonesia’s proposal, which plans to slash ministers’ salaries as part of broader fiscal tightening measures. “Personally, I have no issue with not taking a salary. But the salary is their right as long as they work well, and I think that is reasonable,” he explained. “However, there is no obstacle (to salary cuts) if the economic situation worsens; it can be considered,” he added. Budget efficiency measures are a concern in many Asian countries amid rising economic pressures due to global geopolitical conflicts, particularly the war in the Middle East, which has triggered surges in energy prices and disruptions to international supply chains. This crisis has affected many countries, including Malaysia, which must maintain fiscal stability amid global economic uncertainty. Anwar’s remarks on the potential salary cuts for ministers indicate that the government is opening space for various fiscal adjustment measures if economic conditions deteriorate. Although not yet an official decision, this signal shows that Malaysia is beginning to prepare various contingency scenarios to address the ongoing impacts of the global crisis. In Indonesia itself, discussions on cutting ministers’ salaries have also emerged as part of budget efficiency efforts. Nevertheless, Coordinating Minister for the Economy Airlangga Hartarto emphasised that to date, this proposal has not been formally discussed at the government level.