Anwar, who is also the finance minister, said global geopolitical uncertainties, such as tensions arising from attacks by the US and Israel on Iran, have impacted the global economy and necessitated more prudent government spending.

“The impact of those attacks has also affected our economy, so do not take lightly or dismiss the new decisions that I make.

“While ministries such as education and higher education have appealed (against the cuts), there must be reductions within departments. It is impossible that savings cannot be found from (their allocations),” he said.

Anwar said, however, the government would continue to prioritise the quality of education and the provision of basic facilities in schools and universities, despite any reduction in allocations.

At the same time, he reminded ministries not to operate in silos, and urged them to understand the broader economic challenges from a macroeconomic perspective.

“In the current situation, everyone must be sensible and wise enough to understand the problems and address them.

“Take the opportunity to rectify these weaknesses, reduce costs where necessary, and at the same time, determine the correct priorities,” he said when officiating the Kuala Lumpur International Book Fair 2026 today.