Anwar: Time to cut back on mega projects

Ahead of the government's Budget review, opposition leader calls for austerity measures for 'tougher times ahead'.

PETALING JAYA: Warning of “tougher times ahead”, Opposition leader Anwar Ibrahim has called for austerity measures and cutting back on mega projects in the government’s Budget review to be announced on Tuesday.

The government is to announce on Tuesday details of a revised 2015 Budget, caused by the weakening of the ringgit and sharp falls in the price of crude oil.

“We want the government to come clean on the economic outlook for the nation,” he said today at a Meet Anwar Programme here.

Anwar, a former finance minister, said other oil dependent countries such as Norway, with very good governance, were already on “alert mode” in anticipation of the long-term effects of low oil prices.

He said it was time for austerity measures in Malaysia. “This will mean cut-backs on mega projects while continuing to spend on critical areas such as healthcare, education and the humanitarian assistance for flood victims,” he said.

However, he noted that the government had continued to fail at controlling and cutting back frivolous spending, despite repeated opposition calls for remedial measures.

Earlier today, DAP elder Lim Kit Siang had proposed that the government slash by half the RM19 billion budget of the Prime Minister’s Department and the ministries under it.

Anwar, who is Selangor Economic Advisor, acknowledged that international commodity prices were beyond the government’s control but prudent financial management of the nation’s funds was still something that could be controlled.

“What have they been doing all this while? Is this the kind of attitude to showcase our drive for transformation?” he queried.

Anwar advised the rakyat to be more frugal and not to take on unnecessary debt as there was a possibility of government spending cuts which would inevitably slow down growth.

“As inflation continues to rise while wages remain stagnant, the rakyat will face greater economic hardship and income inequality will continue to widen,” he said.