Malaysia announces measures to cut govt costs

Mon Jun 9, 2008

KUALA LUMPUR, June 9 (Reuters) - Malaysian Prime Minister Abdullah Ahmad Badawi announced modest cost cutting measures to assuage public anger over a steep rise in fuel prices on Monday.

POLITICAL ANALYST KHOO KAY PENG

"There are more critical things that the government should look into, such as cutting down and streamlining the public sector."

"The math does not add up, we know Malaysian ministers are not the best paid when compared to other countries like Singapore"

"This is a populist move, but I don't see how such a move could contribute to significant savings for the government since the ministers are not getting awesome money anyway."

LEE HENG GUIE, ECONOMIST, CIMB INVESTMENT BANK

These reductions in overseas holidays, should be an ongoing exercise, not simply announced after these fuel prices hikes. But the austerity drive is good, they can keep government operating expenses low. From 2004 to 2008,the government spending on overseas trips grew by 9 percent.