Prime Minister Anwar Ibrahim has indicated that the government is prepared to consider salary cuts for ministers should the ongoing crisis in the Middle East lead to a significant deterioration of the economic situation.
Speaking to the media after attending prayers at a local fire station surau on Friday,
Anwar noted that while such measures are possible, the current salaries of ministers are already relatively low.
He emphasized that the primary focus remains on the quality of service provided by the cabinet.
He stated that while he personally does not take a salary, other ministers have a right to their remuneration as long as they perform their duties effectively.
Responding to regional fiscal trends
The Prime Minister was responding to queries on whether Malaysia would emulate a proposal from Indonesia to reduce ministerial pay as part of broader fiscal tightening measures in response to global instability.
Anwar reiterated that while there is no immediate obstacle to implementing such a cut, it would be a secondary consideration reserved for a more severe economic downturn.
He maintained that the current arrangement is reasonable given the ministers’ performance.
The discussion comes at a time of heightened regional concern over energy security and supply chain disruptions resulting from the Middle East conflict, prompting various governments to weigh fiscal austerity options.
Reviewing conditions for EV manufacturers
In a separate development, Anwar addressed calls for the Ministry of Investment, Trade and Industry to re-evaluate the conditions imposed on electric vehicle (EV) manufacturers looking to establish factories in Malaysia.
This follows concerns raised by Perak state industry and investment committee chairman Loh Sze Yee regarding restrictive policies.
Loh suggested that certain stringent conditions might undermine foreign investor confidence and damage the national investment image.
The concerns specifically involve the plans of Chinese EV giant BYD to invest in a completely knocked down (CKD) assembly plant in Tanjung Malim. Critics have warned that the current regulatory framework may put such high-value projects in jeopardy.
Anwar indicated that these conditions need to be reassessed based on overall national benefits and long-term interests to ensure Malaysia remains a competitive destination for the global automotive industry.
