In a circular issued on Thursday, it cited the pressure of global inflation and rising cost of goods as the reason for the move.

“Despite recent positive economic growth, the global economic uncertainty and geopolitical tension have resulted in inflationary pressure and sharp increases in the price of goods.

“With these measures, the finance ministry aims to cut its overall operational expenditure by at least 5%,” it said in the directive signed by treasury secretary-general Asri Hamidon.

One of the key measures is on overseas travel, with a limit placed on the number of officers travelling abroad with ministers, deputy ministers, and senior government officials.

“There should not be more than two officers for countries which have Malaysian missions and three for others.

“Secretaries-general, deputy secretaries-general, heads of departments and agencies are only allowed to go abroad on official duties three times a year while it is twice for other government officers,” it said.

However, the directive did not state how many times the prime minister and other members of the Cabinet were allowed each year.

It said all flights are to be in economy class irrespective of the officers’ service grades while encouraging them to book tickets and hotels online on their own so that they can go for the cheapest fares and accommodation costs.

Official travels abroad, it added, are only allowed for scheduled or periodical meetings which are approved in the annual budgets and/or by the Cabinet.

However, it has encouraged officers to delegate the heads of Malaysian missions in the countries to represent them.

“Priority for overseas courses and training is given for online courses unless all expenditure is borne by the organisers.”

It has also directed the ministries and departments not to create new positions or transfer civil servants except on a trade-off basis or redeployment with no financial implications.

“As for critical services like health, education, security, enforcement and inland revenue, they can be done only if absolutely necessary,” the treasury said.

Touching on official ceremonies, celebrations, meetings and seminars, the treasury said all ministries and government departments must now limit the number of times such activity takes place.

“But if absolutely necessary, they are encouraged to be held at government venues, and limited to the budget allocated.

“All advertisements and promotions for these events must be produced in-house and should not be outsourced. All souvenirs must be Malaysian-made products and only locally-produced food must be served as refreshments,” it said.

“Spending on sponsorship programmes, media and billboard advertisements must be reduced and the existing contracts must be reviewed once they end,” it said.

The treasury said all outsourced contracts must be reviewed to see if the services are still needed to avoid wastage of funds.

“For example, the number of security guards for each shift in a Kuala Lumpur school need not be the same as those in rural schools.”.