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Malaysian govt faces calls to slash perks
Posted: 10 June 2008 1648 hrs

  PM Abdullah Ahmad Badawi
 
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KUALA LUMPUR - Malaysia's premier faced calls Tuesday from within the ruling party and the opposition to slash ministerial perks on top of a cost-cutting package announced in response to rising oil prices.

Prime Minister Abdullah Ahmad Badawi said Monday his government would create 2.0 billion ringgit (613 million dollars) in savings to soften the blow after last week's unpopular 41 percent fuel price increase.

As part of the package, official overseas trips will be limited, purchases of assets will be deferred, and the entertainment allowance for ministers will be cut by 10 percent.

However, Sazmi Miah, a leader in the ruling United Malays National Organisation's youth wing, said the government must do more to help the people after the overnight fuel hikes, which have triggered street protests.

"More needs to be done by the government in order to get back the people's confidence," he told reporters after launching a blog to provide feedback on the influential youth wing.

"Basically all government servants (including ministers) should take a 10 percent pay cut to help the people, even the private sector can take a (10 percent) cut, put it in a basket and give it back to the people," he said.

Sazmi said abolishing the entertainment allowance entirely would also show the people the government was serious about cost-cutting.

After the fuel hike, pump prices are now 2.70 ringgit (0.84 dollars) for petrol and 2.58 ringgit for diesel, still among the cheapest in Asia.

Opposition leader Lim Kit Siang echoed Sazmi's call for deeper cuts in ministerial allowances.

"If the government can increase oil prices from 41 percent... why can't it slash the entertainment allowances of Cabinet ministers and deputy ministers by 50 percent and not just a paltry 10 percent?" he said.

"The public anger and outrage at the unconscionable and callous oil price hikes had been aggravated by the lack of any sign that the government is prepared to end its... misappropriation of public funds."

Opposition parties say that as an oil exporter, Malaysia did not have to implement such a drastic increase, and are planning a series of rallies culminating in a July 12 demonstration they hope will attract 100,000 people. - AFP/ir

 


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