07
Jan
14

COST-CUTTING

cost-cutting-1-thumb-1

WAKE-UP CALL FOR MALAYSIANS

Published in The Sun on 6 January 2014

THE government has announced 11 cost-cutting measures to manage its ministries and departments more prudently. Trimming down on the lavish spending of public money is long overdue.

While cuts in the entertainment allowances, travel and toll entitlements of the higher grades of civil servants are exemplary, they do not add up to much in terms of government savings.

The government’s cost-cutting measures are thus seen by some as merely cosmetic, being too little and coming too late. To many, they are moves to allay the people’s unhappiness and fears.

What needs more drastic pruning is the big-time allocations given to ministries and departments to organise public events and programmes. Government departments must adopt more cost-effective ways of organising their activities and stop doling out unnecessary entertainment, food, drink and other goodies.

The government machinery will run more productively if office meetings, in-house workshops and seminars are uninterrupted by breaks for refreshments where food and drink is served. Off-site training programmes and study visits at home and abroad must be kept to a minimum and stringently approved.

Huge official delegations with accompanying entourage on overseas missions contribute to government overspending and must be reviewed.

The wastage and mismanagement revealed in the Auditor-General’s Report seem even more reprehensible now as the rakyat face rising living costs.

To the public, announcements of cuts in subsidy, toll hike, increase in quit rent and electricity tariff coming in quick succession mean only one thing – the spiralling cost of living with the expected increase in the cost of goods and services.

To the average person this means big dents in personal and family budgets; to the lower-income groups this spells great hardships as they struggle to put food on the table.

More special schemes must be put in place to distribute food and basic necessities to the needy. In India, for instance, the central and state governments work hand in hand to provide food security to the poor through public distribution schemes.

Those eligible are given ration cards or stamps to buy food at below market prices. By collaborating with established humanitarian organisations such as Red Crescent Malaysia and Mercy Malaysia to manage distribution, the schemes initiated by the government can be properly run and supervised as in the recent flood relief efforts.

There can be many more special funds for the needy which calls for donations from the more affluent public to contribute to what can be looked upon as a humanitarian cause.

In support of the government’s call for prudence, the GLCs and corporate sector should also adopt cost-cutting measures in company spending, including for travel, entertainment, food, gifts, etc.

Company events such as product launching and award giving can continue but with less fanfare, pomp and ceremony. To show that they are sensitive to national issues and empathise with the plight of consumers hard-hit by rising costs, their CSR priorities can be channelled towards schemes that provide aid for food and other basic necessities.

This will ensure that in the short term the most vulnerable groups are cushioned from the blows of the nation’s financial and economic woes.

For the average income earners, the new year also means adopting cost-cutting measures in managing our personal and family budgets.

More prudent spending will require greater financial discipline as we look for cost-saving options. We have to change some of our habits and lifestyle patterns to become more discriminating and selective consumers.

This means comparing prices and shopping around for the best bargains for food and clothing and managing household utilities more carefully.

Household electricity consumption, for example, can be reduced by analysing our usage and cutting down on unnecessary use and wastage. Switch off electrical appliances including televisions and computers when not in use. Use energy efficient lights such as fluorescent lights or energy saving lamps.

Train ourselves to be informed consumers who read energy labels and ask for assistance in choosing the right energy saving equipment. In buying a fridge for instance, make sure we get the right size and model to suit our family’s needs. A good habit is to follow the energy saving tips that come with every electrical appliance.

This year can be seen as a wake-up call for Malaysians to be more frugal as the country faces financial challenges. Admittedly, some of them are caused by years of overdevelopment and indiscriminate spending.

The euphoric, feel-good factor created by abundant economic opportunities has created a society which is profit-driven and materialistic, where a person’s worth is measured by economic success.

Perhaps 2014 will mark the beginning of a new era when Malaysians take stock of their priorities and change their ill-gotten habits and values. Perhaps we will become less greedy as we face the challenge of making our ringgit and sens meet.

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2 Responses to “COST-CUTTING”


  1. 1 Thumb Logic
    January 11, 2014 at 5:51 pm

    In 1998 Poland introduced similar measures. 10 months later the emoluments of government employees and pensioners was cut by one third when they were paid one month salary every three months. Comparisons are odious but it is timely just to take note.

  2. 2 ninitalk
    January 14, 2014 at 8:06 am

    Yes Thumb Logic we have to trim down our spending – both the government and the people. I’m not so pessimistic as to think Malaysia will go the way of Poland or Greece, but we had better tighten our purse strings and curb unnecessary spending


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