According to Sim, the Entrepreneur Development Ministry wants to cut costs by RM20 million

GEORGE TOWN: In light of the uncertain state of the world economy, the Ministry of Entrepreneur Development and Cooperatives is aiming to save RM20 million this year.
The action is in accordance with the Finance Ministry’s (MoF) mandate to realign allocations for 2026, especially with regard to operating spending, according to its minister, Steven Sim Chee Keong. The cuts will concentrate on government operating expenses rather than public welfare or development spending. For instance, large-scale events and functions will be minimized; abroad travel, including at the ministerial level; a temporary halt to new employment; and fewer asset acquisitions as part of cost-cutting measures are among the expenses to be cut, he said.

Following a walkabout with Penang Chief Minister Chow Kon Yeow at the Pulau Tikus Public Market here on Sunday, May 3, he was addressing reporters.

According to Sim, the actions are required because the globe is still dealing with several concerns, such as disruptions in the oil supply, the energy crisis, and protracted geopolitical conflicts in the Middle East.

He stated that the government must preserve enough fiscal room to continue supporting initiatives like subsidies, business growth, and welfare programs while ensuring that the impact on the economy and enterprises is minimized and that public welfare is not compromised.

He added that the ministry is still dedicated to providing up to RM15 billion in funding to support businesses, especially micro, small, and medium-sized enterprises (MSMEs) and the corporate sector, and that it will keep its development spending at RM750 million this year without making any cuts. The government, not the rakyat, is spending money on this cost-cutting measure. To protect the populace and the country’s economy, we will actually keep allocating development and welfare monies,” he declared.

In a statement on April 30, MOF emphasized that core expenditures, including fundamental services, security, healthcare, and education, will continue as authorized under Budget 2026, while operating expenditure adjustment guidelines only apply to non-critical spending.