Curbs on overseas trips, ministers' allowances cut
By Deborah Loh and Joseph Sipalan , New Straits Times
June 10,2008
 
 
Prime Minister Datuk Seri Abdullah Ahmad Badawi having a discussion with Domestic Trade and Consumer Affairs Minister Datuk Shahrir Abdul Samad (centre) and Second Finance Minister Tan Sri Nor Mohamed Yakcop (right) in Putrajaya yesterday.
Prime Minister Datuk Seri Abdullah Ahmad Badawi having a discussion with Domestic Trade and Consumer Affairs Minister Datuk Shahrir Abdul Samad (centre) and Second Finance Minister Tan Sri Nor Mohamed Yakcop (right) in Putrajaya yesterday.

PUTRAJAYA: The government will be leading by example after the fuel price hike, by slashing expenditure that would save it RM2 billion.
The money would go towards expanding the social safety net for the poor and lower-income group, said Prime Minister Datuk Seri Abdullah Ahmad Badawi. Details will be announced separately.

All cabinet members and deputy ministers will take a 10 per cent cut in their entertainment allowances, effective July 1.

Their paid holidays have also been slashed to one week a year and limited to Asean countries. Previously, they could holiday in any overseas destination.

In public administration, ministries, departments and agencies have been told to cut back on the frills and hold their events only at government facilities.
"The government has been monitoring the people's reaction to the fuel price hike.

"It was a difficult decision that had to be made to ensure that there will be enough resources for the country's future and for future generations.

"All parties must now be prudent and find ways to reduce expenditure, including the government. The government feels the people's suffering and has decided that the country's leadership should set an example in facing this challenge," Abdullah said yesterday.

The cost-cutting measures were outlined to all ministries, departments and federal statutory bodies in a circular yesterday issued by the Treasury.

Other measures included limited overseas travel for official purposes to very important international or government-to-government meetings.

On such trips, no more than three officers from a ministry or department can attend the meetings, and they must be directly involved in the matter.

A minister can take three officers on official overseas visits, while a deputy minister can be accompanied by two.

Government events like conferences, seminars and courses, must all be held on the ministry's premises.

Souvenirs, decorations and buffet spreads should be toned down to a moderate level.

Giving souvenirs to guests and VIPs at these events is discouraged.

Purchases of assets like cars, office furniture and computers are to be postponed if they have not been committed to yet, and procurement of printers and stationery is to be reduced.

These cutbacks form about 10 per cent of the public administration's operating expenditure this year.

The creation of new posts in the civil service has been frozen except for critical posts in education, health, enforcement and collection of government revenue.

Restructuring of statutory bodies is not allowed, while ministries and departments can only restructure their organisations as long as it reduces manpower and does not involve the creation of new posts.