Anwar warns ministries against blank cheque approach while Malaysia grapples with subsidy burden
Malaysian Prime Minister Anwar Ibrahim has warned government ministries against excessive spending and reliance on subsidies. He emphasized the need for fiscal discipline, noting that the current subsidy burden is unsustainable.
Why it matters
The government is attempting to balance social welfare needs with the necessity of fiscal consolidation to manage national debt.
PUTRAJAYA, Sept 8 — Prime Minister Datuk Seri Anwar Ibrahim has warned against the unsustainable trajectory of public spending, stressing that the government cannot indefinitely expand allocations while managing the growing cost of subsidies.
Speaking at the Plantation and Commodities Ministry’s monthly assembly today, Anwar called for greater fiscal discipline, arguing that the government must move away from the habit of addressing every crisis simply by increasing funds.
“There is a need for greater discipline in managing public expenditure. We cannot continue responding to every problem simply by increasing allocations, particularly when the cost of subsidies remained high,” Anwar said.
“We have already paid RM40 billion in subsidies. This is not a small amount.”
The PM stressed that rising expenditure must be coupled with measurable outcome, questioning the long-term viability of the current spending model.
“If we keep increasing (spending), how long can we continue?”
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