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Govt’s RM10b budget cuts could trigger ‘false savings’, warn analysts

News RoomBy News RoomMay 2, 2026Updated:May 2, 20262 Mins Read
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It seems like governments are always trying to find ways to save a buck, and lately, there’s been some chatter about Malaysia’s plan to slash about RM10 billion from its operating expenditure. This includes a pretty significant chunk, an estimated RM3 billion, from the Health Ministry. Now, on the surface, cutting costs sounds like a sensible move, right? Like when you decide to pack your lunch instead of buying it every day. You save money now. But a lot of smart folks, analysts and experts, are raising a red flag, worried that these “short-term savings” could actually end up costing more in the long run. It’s like buying a really cheap pair of shoes – they might save you money upfront, but if they fall apart in a month and you have to buy a new pair, did you really save anything? This sentiment is echoed by Barjoyai Bardai, who is a big deal at Universiti Sains dan Teknologi Malaysia, being both a pro-vice-chancellor and the dean of the Graduate Studies Institute. He’s pointing out that the real fiscal elephant in the room isn’t just how much the government spends on day-to-day operations. Instead, he believes the deeper, more systemic issue is Malaysia’s “imbalanced subsidy structure.” Think of it this way: instead of just cutting back on weekly groceries, maybe the bigger problem is that you’re paying full price for essentials when there’s a discount club you should be a part of. He’s suggesting that the way the government supports various sectors with subsidies might be the root cause of the financial strain, and simply cutting operational costs is like treating a symptom instead of the actual disease. It’s a nuanced point that highlights that sometimes, the seemingly obvious solution isn’t always the best one, especially when you’re dealing with something as complex as a national economy and the well-being of its people. The balance between immediate financial relief and long-term sustainability is a tricky tightrope to walk, and it seems many are concerned Malaysia might be leaning a little too heavily towards the former without fully considering the latter.

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