KUALA LUMPUR, Jan 20 – The country’s operating expenditure is expected to be reduced by RM5.5 billion by prioratizing on expenditures, said Prime Minister Datuk Seri Najib Razak. In a special announcementon the country’s current economic development earlier, Najib however said that projects which are based on ‘people economy’ will continue.
“The allocated Development Expenditure of RM48.5 billion will be maintained and spent. “This includes projects for the people economy such as public housing, flood mitigation, water supply, electricity and public transport infrastructure such as Pan –Borneo Highway,” said Najib who is also the Finance Minister.
He added that projects such as the MRT Line 2, LRT 3, High-Speed Rail Kuala Lumpur – Singapore will be continued. Meanwhile the 2015 National Service Training Programme (PLKN) will be deferred to enable the programme to be reviewed and enhanced with savings expected at RM400 million.
According to Najib, this is part of the country’s expenditure rationalisation measures. Apart from that he said that expenditure on supply, services, events and use of professional service will be optimised and result in saving of RM1.6 billion. He said, transfers and grants to statutory bodies, GLCs and Government Transfer Funds, particularly those with a steady revenue stream and high reserves will be reviewed. This measure will result in savings of RM3.2 billion.
He added that the government will also reschedule the purchase of non-critical assets, especially office equipment, software and vehicles with an expected savings of RM300 million. Najib today, announced measures to strengthen Malaysia’s economic resilience in facing the global economic changes. He explained that the fall in crude oil prices by 60 percent had created a global economic implication and Malaysia was not spared.