Charles Santiago
Malaysia’s austerity drive needs to go beyond blanket cuts.
On top of current measures, the government should consider appointing a chief savings officer across ministries and agencies, tasked with identifying waste, duplication and procurement leakages, without compromising public services or subsidy goals.
New York’s bold experiment
New York City offers useful inspiration. Under Mayor Zohran Mamdani, a chief savings officer-led model identified $1.8bn (over RM7.5bn) in savings across the 2026–27 financial year, helping address a projected $12bn budget gap.
Around $514m in savings came from reforming procurement, modernising technology, eliminating unused space, improving efficiency, managing overtime and phasing out unused programmes.
More than just cuts
New York’s lesson lies not just in what was saved but in how.
It was not austerity alone. The state government’s support, new revenue streams [from a tax on high-value second homes and the clawing back of a business tax credit that mostly benefits millionaires] and a disciplined agency-level review all played a part. Agencies were pushed to scrutinise budgets, reduce unnecessary overtime, renegotiate contracts and cut waste.
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Crucially, despite inheriting a budget gap larger than during the Great Recession, the aim was never just deficit reduction.
Savings were reinvested into affordability: universal childcare, cheaper groceries, safer streets and waste containerisation – while strengthening libraries, parks and cultural institutions.
Better spending, not just less spending.
Charles Santiago is the previous MP for Klang.
The views expressed in Aliran's media statements and the NGO statements we have endorsed reflect Aliran's official stand. Views and opinions expressed in other pieces published here do not necessarily reflect Aliran's official position.
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