Malaysia tightens belt to anticipate geopolitical impacts

Kuala Lumpur — Malaysia is implementing austerity measures in government spending to anticipate geopolitical impacts on the country.

“The government is implementing initial steps to reduce government spending,” said Malaysian Prime Minister Anwar Ibrahim in a media statement in Kuala Lumpur on Thursday.

The austerity measures include cancelling Eid open house celebrations hosted by ministries, government agencies, and Government-Linked Companies (GLCs), as well as restricting overseas visits by cabinet members.

Anwar stated that escalating conflicts in the Middle East are beginning to impact the global economy through disruptions to energy supply chains and surging global oil prices, which are triggering market uncertainty.

However, he said that in the current situation his administration has chosen to take difficult steps by maintaining the price of RON95 fuel at 1.99 ringgit (approximately Rp8,584) per litre amid rising global oil prices, in order to protect the interests of the people.

Anwar stated that his administration will continue to closely monitor developments in global conflicts and take additional measures to ensure the country’s economic stability remains intact and to protect the welfare of the people.