Malaysia's Prime Minister Considers Ministerial Pay Cuts Amid Economic Pressures

Malaysian Prime Minister Anwar Ibrahim has indicated that the government may consider reducing the salaries of Cabinet ministers if the economic situation worsens, particularly in light of the ongoing global energy crisis. Speaking after prayers at Surau Bomba in Cyberjaya on April 17, 2026, Anwar acknowledged that while ministerial pay is relatively modest compared to their responsibilities, it remains justified as long as ministers perform effectively. He stated, “Our salaries are relatively low, but what matters is that ministers carry out their duties well. As for me, I have no issue with not taking a salary, but it is their right as long as they perform.”

Pay cuts possible for ministers as economy faces pressure: Anwar

The consideration for pay cuts comes as Malaysia faces economic pressures exacerbated by global events, including the Middle East crisis. Anwar's comments were made in response to inquiries about whether Malaysia would follow Indonesia's lead in implementing similar salary reductions for government officials as part of broader fiscal tightening measures. The Prime Minister emphasized that the government prioritizes effective service from its ministers, suggesting that any potential pay cuts would be contingent on the economic climate.

The Straits Times

Anwar reiterated that the government does not arbitrarily sell fuel to other countries, emphasizing the need to ensure a sufficient domestic energy supply. He clarified that Malaysia currently cannot supply diesel externally due to domestic needs, stating, “If there is a surplus, we can consider it. At present, there isn’t.” This statement reflects the government's commitment to maintaining energy stability amid global uncertainties.

Pay cuts possible for ministers as economy faces pressure: Anwar

While Anwar's proposal for potential pay cuts aims to address economic concerns, it has drawn attention to the broader implications of ministerial compensation during challenging times. Critics may argue that reducing salaries could undermine morale among government officials, potentially impacting their performance. Additionally, there are concerns about the effectiveness of such measures in addressing the root causes of economic distress.

The Straits Times

As the situation evolves, Anwar is expected to meet with the Investment, Trade and Industry Ministry to discuss the conditions for electric vehicle (EV) manufacturers looking to establish factories in Malaysia. This meeting may further influence the government's economic strategies and investment climate, particularly in light of recent calls for a reassessment of restrictive policies that could deter foreign investment.

The Straits Times

• “What matters is that they serve well,” — Anwar Ibrahim, Prime Minister of Malaysia

The Straits Times

• “If there is a surplus, we can consider it. At present, there isn’t. But the allegations being made suggest otherwise, so I do not think they are appropriate,” — Anwar Ibrahim, Prime Minister of Malaysia

Pay cuts possible for ministers as economy faces pressure: Anwar

In summary, Prime Minister Anwar Ibrahim's consideration of ministerial pay cuts reflects the government's response to economic pressures, with implications for both governance and public perception.

The Straits Times