Malaysia’s cabinet ministers agree to 20% pay cut: Anwar

[KUALA LUMPUR] Malaysia’s cabinet ministers are voluntarily taking a 20 per cent reduction in their monthly salaries until the country’s economy recovers, said Prime Minister Anwar Ibrahim at a press conference on Monday (Dec 5).

Speaking to the media after chairing the first meeting of his newly sworn-in cabinet in Putrajaya, he said the ministers agreed to the pay cut as they acknowledged the current tough times and were concerned about the livelihoods of Malaysians.

“The salary cut could range from three to five years, depending on the country’s economic condition,” said Anwar, who himself will not draw a single cent as prime minister and finance minister.

The 75-year-old prime minister unveiled his cabinet line-up on Dec 2 and named himself finance minister as “a new approach” to regain the confidence of local traders and foreign investors in Malaysia’s economy.

The new unity government is made up of 28 ministers, smaller than the 31 ministers under the former administration led by Ismail Sabri Yaakob. Many observers were surprised, however, to see Umno leader Ahmad Zahid Hamidi appointed as deputy prime minister, given that the 69-year-old lawmaker is on trial over 47 charges of bribery, money laundering and criminal breach of trust.

During the media conference, Anwar said he would not compromise on his pledge to fight corruption in Malaysia. “I trust my cabinet team is determined to ensure we follow strict rules and the principles of good governance,” he said.

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Anwar also revealed that his administration will review a plan for a state-owned 5G network introduced by the Muhyiddin Yassin-led government in 2021, as it was not formulated transparently.

That earlier plan was for a state-owned agency to own all 5G spectrum, with various carriers using the infrastructure to provide mobile services.

“I have instructed for it (5G plan) to be reviewed as it was not in a transparent manner, with no proper tender process,” he said, without giving details.

Under the previous plan, state-owned agency Digital Nasional (DNB) owned all 5G spectrum and was tasked to deploy and manage the country’s 5G network. DNB will also offer 5G as a wholesale network service to other telcos.

The model, which carries an approved cost of RM16.5 billion (S$5.1 billion) over the next 10 years, has sparked concerns by the country’s major telcos over pricing, transparency and monopoly.

Currently, all six mobile network operators have inked the 5G access agreement with DNB. They are Maxis, U Mobile, Digi Telecommunications, Telekom Malaysia, Celcom Axiata and YTL Telecommunications.

At a separate media briefing on Monday, new Digital Communications Minister Fahmi Fadzil said the rollout of the 5G network plan will be put on hold for the time being, pending the cabinet’s discussion.

He said he would meet representatives from DNB to discuss the current status of the project, as well as issues regarding the spectrum distribution.

At his press conference, Anwar also gave an update on Budget 2023, which was tabled in parliament on Oct 7, just days before parliament was dissolved ahead of the general election. It was never passed in the end, and Anwar said the government will look to revise and improve the budget, after taking into account all views by the cabinet.

“Many assumed that I would reject all proposals (in Budget 2023), but I believe most of the measures are acceptable. We will proceed with those which are good,” he said.