ABOUT RM500 million a year would be saved by the new government’s shuttering of four agencies, according to an economist’s estimates.

The New Straits Times reported Barjoyai Bardai as saying that the decision to scrap the Federal Village Development and Security Committee (JKKKP), the Land Public Transport Commission, the Special Affairs Department (Jasa), and the National Council of Professors would save the government RM200 million in wages and RM300 million in administrative costs, annually.  

The money can then be channelled to much-needed development programmes.

“The savings from the disbandment of these entities can trim management expenditure by 2%, thus raising development expenditure,” Barjoyai told the daily.

“Although the amount is not much, it is a positive step and a sign that the government is trying to save.”

The administration’s decision to also slash the salaries of all ministers by 10% would also net an additional RM3 million in savings, he said in the report.

Yesterday, Prime Minister Dr Mahathir Mohamad made the announcement to shut down the agencies as part of the Pakatan Harapan government’s efforts to trim government spending, which he said had ballooned under the previous Barisan Nasional administration.

The four agencies employ a total of about 3,000 people, with the most coming from JKKKP, which comprises 1,677 village chiefs in Kelantan, Penang, and Selangor.

Dr Mahathir had claimed that some of these bodies, such as Jasa and JKKKP, were used by BN for propaganda work. – May 24, 2018.