10% pay cut for ministers to continue, says Guan Eng

10% pay cut for ministers to continue, says Guan Eng

The finance minister says he has not received any instructions to override the prime minister's decision in May to deduct 10% from the salaries of federal ministers.

Finance Minister Lim Guan Eng.
KUALA LUMPUR:
Finance Minister Lim Guan Eng today said the 10% salary reduction for Cabinet members would continue despite the Tabung Harapan Malaysia fund coming to a close on Dec 31 this year.

Speaking to reporters in the Parliament lobby here, Lim, who is also the Bagan MP, said the salary cuts announced in May by the prime minister would continue until further notice.

“From what I know, the cut from the salaries does not go into Tabung Harapan; it goes straight into the government’s coffers.

“Whether there will be any stop in the salary cuts is not up to me to decide. I have not received any instructions and unless I do, the salaries of the ministers will continue to be cut by 10%,” he said.

In May, Prime Minister Dr Mahathir Mohamad announced that the salaries of federal Cabinet members would be reduced by 10%. This was perceived as a way to improve the country’s poor financial state and set a good example.

Tabung Harapan was set up about eight months ago to receive donations and contributions from individuals and companies to assist the government in tackling the country’s debt.

“The money (collected from the fund) has no specific purpose except to help the government resolve its financial problems and we will use that money as wisely as possible,” Mahathir had said.

The Johor, Penang and Kedah state governments subsequently announced that they too would cut the salaries of their chief ministers and executive council members by 10% and donate the money to Tabung Harapan.

Yang di-Pertuan Agong Sultan Muhammad V also decreed that his salary and emolument payments be reduced by 10% until the end of his term in 2021, saying he was concerned about the national debt and the country’s economic state.

He also ordered Istana Negara not to hold its usual Hari Raya open house this year.

The Cabinet decided to close collections for the fund at the end of the year.

The National Audit Department is now auditing receipt statements and account payments related to the fund to ensure its management is in order.

A total of RM197,777,960.38 had been collected by Tabung Harapan as of Nov 12.

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