'When we are poor, we must act like poor people': Dr M again warns Najib to cut back on spending as oil income plunges

CYBERJAYA - Former Prime Minister Tun Dr Mahathir Mohamad today said Malaysia can still achieve developed nation status by the year 2020, provided the federal government is thrifty in spending public money.

He said it is clear that the country does not have much money at its disposal amid the sharp drop in global crude oil prices, which makes it all the more important for Prime Minister Datuk Seri Najib Razak to cut out all unnecessary spending.

“We know we don't have money, so we must find ways to spend less. When we are rich we act like rich people, when we are poor act like poor people lah,” he said at a news conference here.

Najib on Tuesday announced a RM5.5 billion cut in Putrajaya's operating expenditure this year, as global crude oil prices dipped to less than half of the federal government's estimated average of US$110 (RM396) per barrel for 2015.

Najib's administration also adjusted its deficit reduction target to 3.2 per cent of the national economy instead of the original 3 per cent, while maintaining the RM48.5 billion development budget.

Dr Mahathir today acknowledged that former protege has “done something” to deal with unavoidable external pressure on petroleum earnings ― which accounts for about a third of Malaysia's revenue ― but stressed that the federal government still needs to identify and “cut off” all non-essential allocations.

Despite the projected sharp drop in petroleum revenue, the 89-year-old remained optimistic that the country is capable of staying the course over the next five years to achieve Vision 2020, the goal he mooted for the Malaysia to leap from its developing status to the ranks of the developed.

“God-willing, if we work hard, don't spend too much, stop giving out BR1M,” he said, referring to the annual cash payout meant for Malaysians in the low income bracket started by Najib in 2012.

“Why should we give BR1M to those who already have money? Spend wisely,” added Dr Mahathir, a staunch opponent of the aid scheme. - Malay Mail