If slashing 10% of entertainment allowances and other such luxury means "saving" RM2 bil, that means Malaysian government allocates RM 20 bil for such purposes!!! Petrol subsidies cost the government RM17 bil and that is unthinkable to Umno. So they have to increase petrol prices by 40 % for petrol. By this deduction the government can do better than reducing 10% for "ENTERTAINMENT"!!! Austerity for the public must be preceded by the politicians, otherwise how can they convince the voters in the next election. I would say an equivalent of 40% slash will be quite acceptable by the people. NOW that would save RM8 bil.!!!

I also propose the politicians pay for their own petrol, not to be claimed from the government (if they are now claiming for petrol allowance). That way they can monitor the situation first hand and more closely.
How the government use of the money saved should be made known to the public. This should be loud and clear and not "ask the officer, they can tell you" mentality.
However all this said and done, economics is about spending, not just saving. Without stimulus from the public sector, or from foreign companies, the government has to do the investment. However Abdullah is asking the public to stay at home and switch off the lights, so I wonder how is he going to stimulate the economy so that the workers can get better pay later to tide over the higher inflation. Less business means no pay increase, or worse, cutting employment.
There are simply too many things the government won't be able to start doing within such a short time. They have lost at least 10 years. The task has become too gargantuan for corrupt-oriented visionary to even start 'thinking what to do'. Time is definitely not on their side. Sigh. But life goes on, suffering is the norm for those living on the edge. Their desperation will lead to anger, anger towards those who had been promising them better live since independence. The promise lasted as long as the availability of oil under Malaysia ground. With mismanagement, Malaysia's future is very, very unclear. On the brighter side, the future of BN is also unclear.

Tuesday June 10, 2008

Cost-cutting to save RM2bil

By MAZWIN NIK ANIS and SIM LEOI LEOI

PUTRAJAYA: The entertainment allowances of ministers and deputy ministers will be slashed and their paid holidays will now be limited to local and Asean destinations.

These as well as several other steps, including a freeze on new government posts and assets purchase, would save the Government RM2bil.

The slashing of allowances and limitation on paid holidays take effect on July 1. Even the Prime Minister and the Deputy Prime Minister will not be spared this new ruling.

The Prime Minister currently enjoys a monthly entertainment allowance of RM18,865 while his deputy gets RM15,015. Other ministers and deputy ministers are given RM12,320 and RM6,000 respectively.

For the paid holidays, Cabinet members will not be allowed to claim for more than a week’s holiday.

Datuk Seri Abdullah Ahmad Badawi said these measures “will not be the first or the last; many other announcements will be made by the Government”.

“The savings will be channelled to subsidies for low-income groups,” he said after chairing the first National Inflation Council meeting at his office here yesterday.

“We are sensitive to the hardship faced by the people as a result of the recent increase in fuel prices.

Everybody will have to be thrifty in these difficult times, including the Government.”

Besides the freeze on new government posts and the purchase of assets like cars, furniture and computers, other measures to be taken are limiting the number of workshops, seminars and conferences held at hotels and postponing all renovation works for government offices.

The Government will also cut down on the number of functions like the opening of offices, prize-presentations as well as disallow attire specifically made for an event.

“There is no point for a special outfit because it’s wasteful.

“In line with this, a 10% cut will be imposed on expenses within departments.

Much of the cut will involve promotional and campaign activities.”

The measures became effective yesterday in a circular issued by the Treasury to all agencies and departments.

The freeze on new posts, however, does not cover critical sectors like education, health and enforcement, and those dealing with the delivery of public services and capable of increasing the country’s revenue.

Restructuring of agencies and departments will also be put on hold, except if this is to reduce the number of workers or which does not involve the creation of new posts.

Official overseas trips will be limited to important international or inter-governmental meetings, with not more than three officers sent, and even then only those directly involved.