Malaysian treasury suggests cutting health and education budgets to sustain fuel subsidy

MALAYSIA: Malaysia’s Finance Ministry has proposed RM5.4 billion (S$1.74 billion) in operating cuts for the health and higher education ministries amid the Iran war’s fiscal impact. A Treasury directive outlined RM10 billion in savings across agencies, including RM3.06 billion from health and RM2.39 billion from higher education. Ministries must submit revised budgets by May 15 to the National Budget Office.

Many believe the strain comes from rising petrol prices, making subsidies essential for ordinary Malaysians. The prospect of budget cuts has sparked discontent, particularly in the health sector, which is already understaffed and overworked. Similar concerns are voiced about the higher education sector, where reductions could further weaken resources. 

On X, one user voiced strong frustration over the proposed health ministry budget cuts, warning that Malaysians could lose their lives if the plan proceeds, sharing multiple criticisms of the suggestion and arguing that the health sector is already overstretched. Some echoed his view, insisting that reductions should instead target other ministries to avoid jeopardising essential services.

Another user stated that the services provided by the government hospitals in Malaysia will always be inadequate. Currently, the fees can be as low as RM5 and RM10. He suggested that the fees should increase slightly to RM10 and RM15, respectively, adding that he constantly sees patients in flashy cars coming for treatment in these government hospitals. 

Others accused the government of continuing crony contracts while essential services face potential cuts, stressing that the Malaysian people matter most during this difficult period. However, there is no concrete evidence to support claims of crony contracts being awarded, making the criticism more reflective of public frustration than a verified fact.

The opposition party PSM, via its X account @PSMGombak, criticised the government for proposing 5% of GDP spending on healthcare while instead signalling cuts. The party urged higher taxes on the wealthy to protect essential services. 

For now, Malaysians may face rapid inflation, worsened by soaring petrol prices. Netizens widely agree that rising fuel costs inevitably drive up the price of essentials like rice and eggs due to the transportation cost.