Political leaders warn that austerity measures could dampen economic growth and deepen the strain on essential public services such as healthcare.

Former finance minister Lim Guan Eng, citing media reports that Putrajaya plans to slash RM10 billion from the RM229 billion allocated for operational expenses under Budget 2026, cautioned that the move may undermine the country’s projected gross domestic product (GDP) growth of four to five percent and harm the delivery of critical public services.

In a statement today...