Anwar’s budget cuts - a master move for reform
Anwar’s budget consolidation process is going to be a real disruptor to stem government inefficiencies and weed out corruption
My latest article in The Vibes
Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim recently announced a move towards fiscal consolidation or budget cuts in response to continuing conflict in the Middle East and a growing budget deficit.
Anwar has been very adamant that Malaysians will not suffer from the Iranian crisis and has maintained his position on the RON95 price remaining at RM1.99 per litre.
However, to keep debt from spiraling upwards, it is necessary to adjust the 2026 budget.
In reality, the Madani government has been working on fiscal consolidation since it was formed in 2022.
Anwar’s latest announcement is signaling the government is acting responsibly in pushing along these cost measures.
Anwar’s move very much reflects what billionaire Elon Musk did for the United States budget just after US President Trump was inaugurated as the president.
Anwar, just like the US Department of Government Efficiency (DOGE), is seeking savings from the government budget, which won’t affect citizens in daily life.
Undertaking this budget review and attempting to cut operating budgets by RM 10 billion for 2026 is actually a massive attack on corruption within the ministries.
Any unnecessary spending will be reviewed, and this will help discover many corruption schemes in saving the government money. Thus, budget cuts will go far beyond items like events, overseas travel, training and non-essential hiring.
Just like DOGE was heavily criticised when it began cutting funds, there are many criticisms regarding Anwar’s budget consolidation moves by commentators. These originate from sources that are currently benefiting from the current government spending programmes.
DOGE proved itself very effective in cutting government waste. Now Malaysia’s own budget consolidation programme is following the DOGE example.
This will benefit all Malaysians by trimming government waste and exposing those parties that have been misappropriating government funds.
This is not just restricted to government ministries, but many GLCs are also included in this consolidation programme.
This move will enhance the ability of the MACC under its new chief commissioner to nab the ‘corporate mafia’ inside the government.
Anwar’s budget consolidation process is going to be a real disruptor to stem government inefficiencies.
It’s going to change the civil service for the better. Anwar is following in the footsteps of Elon Musk, and this budget consolidation process will go down as one of the Madani government’s major reforms.
This was slow coming as there would have been much resistance to implementing it within the civil service.
It took a crisis in the Middle East and rising oil prices to enable Anwar to push this much-needed reform through.
Anwar’s budget consolidation is a master move for reform. – May 5, 2026
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