Anwar Open to Ministers’ Pay Cuts Amid Middle East Crisis

CYBERJAYA – Malaysian Prime Minister Anwar Ibrahim has said the federal government is ready to consider cuts to ministers’ pay if the Middle East crisis triggers a sharper deterioration in the country’s economic outlook, even as he noted that current ministerial salaries are already modest.

Speaking to reporters after prayers at Surau Bomba in Cyberjaya on April 17, Mr Anwar stressed that what matters most is the quality of public service rather than high pay. “What matters is that they serve well,” he said. “As for me, I have no issue not taking a salary. But that salary is their right as long as they perform well, and I think that is reasonable. However, there is no obstacle (to a pay cut) … if the economic situation becomes more severe, it can be considered.”

His remarks came in response to a question on whether Malaysia would follow Indonesia’s proposal to slash ministerial salaries as part of broader fiscal‑tightening measures. Separately, Mr Anwar also said he will convene a session with the Ministry of Investment, Trade and Industry (Miti) to review conditions for electric vehicle (EV) manufacturers seeking to set up factories in Malaysia.

The need to revisit investment rules was highlighted on April 16 by a Perak executive councillor who urged the federal government to reassess the criteria for EV firms. Perak State Industry and Investment Committee chairman Loh Sze Yee warned that overly restrictive policies could erode foreign‑investor confidence and hurt Malaysia’s investment image. He cited concerns over the possible impact on Chinese EV maker BYD’s plan to establish a completely knocked down (CKD) plant in Tanjung Malim, saying conditions must be recalibrated to reflect overall benefits and long‑term national interests.