The price hike was inevitable since the price of crude oil is soaring. Our Mr. Abdullah Bodohwi decided to cut expenses to curb the rise in petrol price.

Via The Star online:

Monday June 9, 2008 MYT 8:39:10 PM

Govt announces cost-cutting measures

By MAZWIN NIK ANIS & SIM LEOI LEOI

PUTRAJAYA: Ministers’ and deputy ministers’ entertainment allowances will be slashed and their paid holidays limited to local and Asean destinations in a cost-cutting move that will save the Government RM2bil this year.

Even the Prime Minister and his deputy will not be spared this new ruling, which takes effect on July 1.

The Prime Minister currently enjoys a monthly entertainment allowance of RM18,865 while his deputy gets RM15,015. Other ministers and deputy ministers are given RM12,320 and RM6,000, respectively.

For the paid holidays, Cabinet members will not be allowed to claim for more than a week’s holiday.

Premier Datuk Seri Abdullah Ahmad Badawi said these measures “would not be the first and the last; many other announcements will be made by the Government”.

“The savings will be channelled to subsidies for low-income groups,” he said after chairing the first National Inflation Council meeting at his office here on Monday. “We are sensitive to the hardship faced by the people as a result of the recent increase in fuel prices.

“Everybody will have to be thrifty in these difficult times, including the Government. Therefore, we are taking these measures to ensure administrative expenses are spent wisely. We have to show leadership by example.”

Other measures announced are a freeze on new government posts and the purchase of assets like cars, furniture and computers, limiting the number of workshops, seminars and conferences held at hotels, and postponing all renovation works for government offices.

The Prime Minister also ordered that maintenance works of government premises be carried out optimally so as to reduce costs and energy use.

The Government will also cut down on the number of functions like the opening of offices, prize presentations as well as disallow attire specifically made for an event.

“There is no point for a special attire because it’s wasteful. There is no need to wear attire with special logos. Later, you will just hang it up and treat it like a keepsake. It suffices to just wear your name tag,” Abdullah said.

“In line with this, a 10% cut will be imposed on expenses within departments. Much of the cut will involve promotional and campaign activities. However, the real amount has yet to be determined by the Treasury.”

Abdullah added that Treasury would issue a warrant once this amount had been ascertained.

The measures became effective Monday in a circular issued by the Treasury to all agencies and departments.

The freeze on new posts, however, does not cover critical sectors like education, health and enforcement, and those dealing with the delivery of public services and capable of increasing the country’s revenue.

Restructuring of agencies and departments will also be put off, except if this is to reduce workers or which does not involve the creation of new posts.

Official overseas trips will be limited to important international or inter-governmental meetings, with not more than three officers sent, and even then only those directly involved.

Niamah!!! Most of the rakyat worked day and night, paid their taxes and NEVER in their life went on a holiday. This incentive should be abolished with immediate effect. Let’s not forget its the rakyat’s money.

All cost cutting measures should have been done first and the last resort would be the lifting of the fuel subsidy. Simply because if fuel price rises, so are things associated with it, which is almost everything. Why is Mr. Abdullah doing it the other way round? Suka main belakang?

Mr. Abdullah, most of the rakyat including me, have little education. Please enlighten us since you were put in charge of our country, you must be a learned person.

We don’t know why as an oil producing country, we do not enjoy fully subsidized fuel prices. We don’t know where our monies from our road tax, income tax, service tax, excise duty from ‘overpriced’ vehicles, cigarettes and alcohol, assessment and whatever goddamnyouniamah taxes went to.

We don’t know why you bought some submarines, jet fighters and sent a moron to space as a passenger and lied to the whole country that he was an astronaut using tax payers’ monies. We don’t know why we have to pay toll for using highways since we already pay so many goddamnyouniamah taxes. We don’t know why you do not allow the school buses to raise the price of their services when you raised the price of fuel. School buses run on water ar? We also don’t know why others say how you could afford to buy a jet plane, a yacht and a bungalow down under. Are we paying you what they are paying BG Lee?

Really, there are many more things we do not know. Do you mind telling us?