In a statement today, it said the two ministries were among those that received the highest allocations in the budget.

“These proposed cost adjustments include postponing events, limiting overseas trips and training programmes, saving on utilities, optimising agency reserves, and delaying recruitment for non-critical positions.

“These measures are being prioritised to create fiscal space for aid and targeted subsidies to protect vulnerable groups and sectors affected by the global supply crisis,” it said.

The ministry yesterday proposed RM5.4 billion in operational spending cuts for the health and higher education ministries as part of measures to save government funds amid the impact of the Iran conflict.

A Treasury directive outlined potential cost savings for various ministries, departments and agencies, but did not provide 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.

It also ordered the postponement of non-essential official events, meetings, conferences, seminars and workshops, adding that necessary events should be scaled down.

Bernama later reported finance minister II Amir Hamzah Azizan as saying the adjustments will not affect frontline personnel or the delivery of basic services to the public.

He stressed that critical sectors including healthcare, education and security will remain the government’s priority, in line with its commitment to ensure the people’s well-being.

“Ministries such as the health and education ministries, especially those involving the frontlines of service delivery, will continue to receive full support as approved.

“This includes ensuring that hospitals, schools, and other essential services operate without disruption,” he said.