Prime Minister Datuk Seri Anwar Ibrahim indicated that Malaysian cabinet ministers might face further salary reductions if persistent global economic uncertainties, exacerbated by the deepening Middle East crisis, continue. While performance remains the primary focus, Anwar acknowledged that a pay cut could be implemented if the economic situation deteriorates significantly. He also provided an update on the safe passage of Malaysian-owned vessels through the Strait of Hormuz and announced upcoming discussions regarding the re-evaluation of conditions for electric vehicle factory investments.
Prime Minister Datuk Seri Anwar Ibrahim has signaled that Malaysian cabinet ministers could potentially face another round of salary deductions, should global economic uncertainties continue to escalate due to the worsening Middle East crisis.
While emphasizing that the primary consideration for ministers should always be their performance and dedication to public service, Anwar conceded that the suggestion for pay cuts could be seriously contemplated if the prevailing economic circumstances necessitate such measures. He articulated, "What matters is that they serve well. As for me, I have no issue with not taking a salary. But salary is their right as long as they perform well and I think that is reasonable. However, it (salary cut) can be considered if the economic situation becomes more severe." This statement was made by the Prime Minister following Friday prayers, in response to a question regarding Malaysia's potential adoption of Indonesia's proposal to reduce ministerial salaries as part of broader fiscal tightening initiatives. It is worth recalling that in December 2022, shortly after the formation of his new cabinet, Anwar had announced that the ministers had collectively agreed to a 20% reduction in their monthly salaries. This measure was reiterated in October of the following year when Anwar tabled Budget 2026, confirming the continuation of the 20% pay cut. Furthermore, Anwar himself has voluntarily forgone his salary as both Prime Minister and Finance Minister since assuming these significant portfolios in November 2022, demonstrating a personal commitment to fiscal prudence. The Prime Minister also provided a crucial update on the safety of Malaysian-owned vessels navigating through the strategically sensitive Strait of Hormuz. He confirmed the safe arrival of the first of seven Malaysian-owned vessels in the country, marking a significant development amidst regional tensions. He further revealed that an additional vessel is nearing Malaysian territorial waters, while the government is actively monitoring the status and progress of the remaining ships. Anwar candidly acknowledged that potential challenges might still arise concerning the remaining vessels, particularly in light of recent developments impacting the strait. He elaborated on the situation, stating, "In terms of approvals, Iran has approved seven, but one has technical issues and cannot depart from the port." The seven Malaysian vessels were among a larger fleet of hundreds that found themselves stranded in the Persian Gulf and in proximity to the Strait of Hormuz following the escalation of the US-Iran conflict, which commenced on February 28. The situation was further complicated by a US naval blockade of the strait, announced by US President Donald Trump on April 12, which specifically targeted Iranian shipping and ports. In a separate but equally significant development, Prime Minister Anwar announced his intention to engage in detailed discussions with the Ministry of Investment, Trade and Industry (Miti) concerning recent calls to re-evaluate the stipulated conditions for the establishment of electric vehicle (EV) factories within Malaysia. This move comes in the wake of a recommendation made by Perak state industry and investment committee chairman Loh Sze Yee on Thursday, who urged the government to reconsider the manufacturing terms imposed by Miti. Loh’s appeal was prompted by a reported snag in Chinese EV manufacturer BYD's investment plans for a plant in Tanjung Malim, reportedly due to disagreements over these very manufacturing terms. On another noteworthy occasion, Prime Minister Anwar took to his Facebook page yesterday to highlight the integral role of Malaysia's robust infrastructure and efficient supply chain in underpinning the successful investments made by Amazon Web Services (AWS) in the country. He affirmed the government's commitment to continuously reinforce existing policies to guarantee the long-term benefits derived from such strategic investments. Anwar's remarks followed a productive courtesy visit from Michael Punke, the vice-president for public policy at AWS, and his delegation. This visit coincided with the one-year anniversary of the AWS Region launch in Malaysia, underscoring the significance of this strategic partnership and its positive impact on the nation's digital economy
Anwar Ibrahim Ministerial Pay Cuts Economic Uncertainty Middle East Crisis Strait Of Hormuz
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