KUALA LUMPUR (April 30): Malaysia’s recent spending cuts will not affect essential government services, including health and education, the Ministry of Finance said.

Core spending for healthcare, education, security and basic public services will continue as approved under Budget 2026 allocations, the ministry stressed in a statement on Thursday.

The spending adjustments are targeted towards limiting “non-critical” operating expenses such as postponing events, limiting overseas travel and training, reducing utility costs, optimising agency reserve savings, and delaying the hiring of non-critical positions, the ministry reiterated.

The statement follows instructions issued on Wednesday to ministries to cut operating expenditures to stave off the growing economic pressures as the geopolitical conflict in the Middle East enters its third month.

The global supply crisis, which involves rising energy prices due to geopolitical tensions in the Middle East, is expected to have a “significant and prolonged” impact on the domestic economy, the ministry cautioned.

The expenditure adjustments are necessary to create fiscal room to fund assistance and targeted subsidy programmes to protect vulnerable groups and sectors affected by the global supply crisis, the ministry said.

The ministry is also committed to further strengthening crisis response capabilities by adopting “a balanced approach” that ensures essential services and economic support continue to be funded while the country’s financial position remains strong, it added.

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