SHAH ALAM, June 23 — The state government aims to save around RM230 million this year by reducing non-critical expenditure, and will channel the savings towards financial assistance for the people through its stimulus packages, said Menteri Besar Dato’ Seri Amirudin Shari.
The savings will come from restructuring state spending, including a five per cent reduction in operating expenditure and a 10 per cent reduction in development expenditure.
Of the RM230 million, RM93 million would come from optimising operating expenditure, while RM137 million would come from savings in development expenditure.
He added that not all allocations for the two phases of the Selangor Resilience Enhancement Package (SREP) will be from the state coffers.
“For example, the cost of providing free meals to students will be largely borne by local authorities,” Amirudin said during his winding-up speech on SREP Phase Two at the Selangor State Legislative Assembly today.
The package totals RM355.06 million, with RM145.8 million for Phase One and RM209.26 million for Phase Two.
He noted that the state government has identified several areas where spending could be reduced, including non-essential activities such as overseas visits and retreats, while ensuring programmes involving public welfare are not affected.
“We will not cut spending that involves the people’s welfare. Our focus is on project-related expenditures, especially those still in the early stages.
“For some projects, such as those involving architecture, planning and design, we may need to put them on hold temporarily or decide whether they should proceed first,” Amirudin said.
Meanwhile, the decision to hold a special sitting to table SREP Phase Two before implementing the measures was intended to allow input from both government and Opposition members.
He attributed this to the economic challenges arising from the ongoing West Asia conflict, which requires a collective response, as well as alternative views that the state government could consider.
“Usually, these packages would be announced directly by the government because during a crisis, sometimes we need immediate action. But in this situation, we still have time to discuss.
“This is not only about the government. The structure of government is important, (but) state assemblymen here are also part of the decision-making process,” Amirudin said.
The current economic challenges should not be treated as a political issue, but as one that requires cooperation from all relevant parties, including state agencies, local authorities, and state assemblymen.
The Menteri Besar said that Selangor is also adopting a whole-of-government approach, involving the state administration, local authorities, government-linked companies, and other stakeholders, to ensure the stimulus packages strengthen the state’s resilience.
“We recognise the role of the Opposition, assembly members, public offices, and everyone involved so that we can handle this together,” he said.
