A directive issued by the Treasury today contained suggested cost savings that could be achieved by various ministries, departments, and agencies, but without a breakdown of where the savings would come from.
The directive said a total of RM10 billion could be saved across the board, including RM3.06 billion from the health ministry and RM2.39 billion from the higher education ministry.
The health ministry was allocated a total of RM46.5 billion under this year’s budget, while RM18.6 billion was earmarked for the higher education ministry.
The Treasury added that it was capable of saving RM664 million on its own, while the home and defence ministries could slash RM647 million and RM508 million, respectively.
The directive said the rural and regional development ministry could save some RM571 million, the education ministry RM466 million, and the digital ministry RM508 million.
The directive also ordered the postponement of unnecessary official events, meetings, conferences, seminars, and workshops. It said those that are necessary should be scaled down and held in a moderate manner.
It also encouraged necessary courses and trainings to be held online instead of in person.
It likewise ordered an indefinite delay of new posts and intakes of civil servants, except for critical roles in sectors like education, health, security, enforcement, and revenue collection.
In these instances, it said the hiring process should be subject to strict control by the public services department and finance ministry.
The directive said the National Budget Office had been asked to review the remaining estimated operating expenditures under the 2026 budget for each ministry, department, and agency.
It said Putrajaya’s total subsidy bill was now expected to balloon to RM58.4 billion for the whole year, from the RM15 billion allocated under the approved 2026 budget.
All ministries, departments, and agencies have been given until May 15 to submit their proposed budget reviews to the National Budget Office.
FMT has reached out to the finance ministry for comment.