Malaysia Is In High Level Of Debt – Mahathir Mohamad
Salaries of ministers has been reportedly slashed in Malaysia by 10 per cent and also their public spending, cut.
The Prime Minister of Malaysia, revealed that the step was taken as to control the spending of the country as the new government is in high-level of debt running to about one trillion ringgit (251.5 billion U.S. dollars).
The declaration was made known on Wednesday by Prime Minister Mahathir Mohamad, as the newly sworn in ministers were in attendance at the first cabinet meeting.
“We are concerned about the country’s financial problem,” Mahathir told reporters after the meeting.
He further stated that the senior civil services will not be forced to stick to the decision, but can do so if they want to contribute towards reducing the cost of the running this country.
Mahathir, since winning the election, has been focusing on implementing the commitments promised during the campaign, including abolishing the six-per cent goods and services taxes, which the rating firm Moody’s said could narrow the country’s tax base and strain fiscal strength.
At the news conference, Mahathir said Malaysia’s debt is around 65 per cent of the country’s GDP.
Aside from the pay cut, he has been advocating other measures, including forming a small cabinet, downsizing the government and recovering some assets related to the 1MDB state fund overseas.
He said the Land Public Transport Commission will be disbanded, with its previous functions placed under the transport ministry, while several other “non-essential” institutions will be dissolved.
In addition, he said the government is reviewing the contract for the search of the missing MH370 flight.
“If we find that it is not necessary, we will not renew (the contract),” he said.