JAKARTA - Malaysia is implementing a policy of saving state spending or "tightening the belt" to anticipate the geopolitical impact on the country.
"The government (Malaysia) is implementing initial savings measures in state spending," said Malaysian Prime Minister (PM) Anwar Ibrahim as reported by ANTARA, Thursday, March 12.
The savings include eliminating the Idul Fitri griya (openhouse) title by ministries, government agencies, and Government-Linked Companies (GLC), as well as limiting foreign visits by cabinet members.
Anwar said the escalating conflict in the Middle East has begun to impact the world economy through disruptions in energy supply chains and a surge in global oil prices that have triggered market uncertainty.
As a country with an open trading economy, Anwar continued, Malaysia is not immune from the impact of geopolitical developments, such as facing the risk of rising transportation costs, pressure on commodity prices, and challenges to economic stability.
However, he said, in the current situation, his government chose to take a difficult step by maintaining the price of RON 95 fuel at 1.99 ringgit (Rp8,584) per liter amid rising world oil prices, in order to maintain the interests of the people.
Anwar stated that his government would continue to closely monitor the development of global conflicts and take additional steps to ensure that the country's economic stability is maintained and the welfare of the people is protected.
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