Prime Minister Anwar Ibrahim has said Malaysian Cabinet ministers could face another round of salary cuts if the country’s economic situation deteriorates due to ongoing global uncertainties linked to the Middle East crisis.
Pay cuts possible if conditions worsen
Reported by The Star, Anwar said while ministers’ salaries are their right, any reduction could be considered if the economic outlook becomes more severe.
He stressed that performance should remain the main priority.
“What matters is that they serve well. As for me, I have no issue with not taking a salary. But salary is their right as long as they perform well and I think that is reasonable.
“However, it can be considered if the economic situation becomes more severe,” he said.
He was responding to questions on whether Malaysia would follow Indonesia’s proposal to cut ministerial salaries as part of broader fiscal tightening measures.
Ministers already on 20 percent pay cut
Anwar noted that ministers are already taking a pay cut.
In December 2022, shortly after forming the government, he announced that his Cabinet had agreed to a 20 percent reduction in their monthly salaries.
The measure remains in place, with Anwar confirming during the tabling of Budget 2026 that the pay cut would continue.
He also reiterated that he has personally forgone his salary as prime minister and finance minister since assuming office.
The potential for further cuts comes amid rising global economic uncertainty, partly driven by tensions in the Middle East.
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