Malaysia PM’s to-do list: cut costs, rein in US$251 billion debt, review MH370 search contract
New Prime Minister Mahathir Mohamad, who was swept into power in a surprise election win this month, is moving swiftly to stabilise the nation’s finances
Thousands of government workers in Malaysia will lose their jobs, state agencies dissolved and some projects could be aborted as Prime Minister Mahathir Mohamad moves to cut the national debt of 1 trillion ringgit (US$251 billion).
The government will dismiss 17,000 contractual employees and reduce ministers’ salaries by 10 per cent, Mahathir said in a press briefing after his first cabinet meeting in Putrajaya on Wednesday. Contracts, including those for the search of aircraft MH370 and for the Singapore-Kuala Lumpur rail, will be reviewed, he said without giving a timeline.
Agencies, including the regulator Land Public Transport Commission and the Special Affairs Department, which is tasked with advising the state on maintaining public perception, will be dissolved.
“I’ve been informed that our debt is actually 1 trillion ringgit, but today we were able to study and look for ways to reduce this debt,” he said
Mahathir, who was swept into power in a surprise election win this month, is moving swiftly to stabilise the nation’s finances after the government reported that debt was higher than previously disclosed under the former administration.