AN analysis into Prime Minister Muhyiddin Yassin’s cabinet line-up shows that his bigger pool of ministers and deputies will cost the government an additional RM7.6 million a year compared with Pakatan Harapan’s cabinet.

Muhyiddin’s new team of ministers and deputies announced on Monday comprises 15 more individuals compared with the previous one and is dubbed the second-largest cabinet in Malaysian history.

But unlike PH, Muhyiddin did not announce a 10% pay cut for members of the cabinet, which means that monthly salary and allowance expenses will increase by RM630,000, or about RM7.6 million a year.

In the previous government, the allowance difference between the deputy prime minister’s post and a minister was under RM3,000, and it is likely so in the new cabinet, with the additional amount paid out to four senior ministers who replaced the deputy prime minister.

Even if the new government announces a 10% pay cut for its cabinet members, the additional expense per month is still RM540,000, or RM6.5 million a year.

The PH cabinet had 55 ministers and deputies while Muhyiddin’s line-up has 70 members, with 31 ministers and 38 deputy ministers.

There are five additional ministers, 11 more deputies but no deputy prime minister in the Perikatan Nasional cabinet.

If Muhyiddin does not follow the example set by his predecessor, Dr Mahathir Mohamad, taking a 10% pay cut, he will receive RM58,604 in salary plus allowance per month, similar to former prime minister Najib Razak’s emoluments.

If Muhyiddin takes the pay cut, his salary and allowance will be similar to Dr Mahathir’s at RM56,318 monthly.

This works to RM675,816 a year if he takes the pay cut and RM703,248 a year if he does not.

For total expenses, PH spent some RM10.5 million per month on the salaries and allowances of its cabinet members. The PN cabinet is estimated to cost almost RM13 million, or RM12.5 million if the 10% pay cut materialises.

Currently, the salary of a PN minister is RM1,491 more than a PH minister but the additional cost of five full ministers will still be RM200,000 (10% cut) to RM240,000 a month.

This works out to a 19% to 23.6% increase in monthly salary expenses for ministers compared with the previous government.

The lack of a deputy prime minister in Muhyiddin’s cabinet, however, will also save RM42,566 (pay cut) to RM44,383.

On the deputies’ side, the 11 extra slots mean RM382,382 in additional monthly expenses – a 40% increase – even if Muhyiddin announces a 10% pay cut.

In total, the PH government spent more than RM2 million a month on the salaries and allowances of its cabinet members. PN is estimated to spend between RM2.63 million and RM2.71 million for the same purpose, a 25% to 30% increase.

This works out to additional expenses of RM6.5 million to RM7.5 million a year.

Najib’s Barisan Nasional administration had 68 members, with 33 ministers and 33 deputies, excluding the prime minister and deputy prime minister.

Compared with PN’s cabinet, the difference in expenses for the Najib cabinet is an estimated RM30,000 to RM150,000.

Asked if it is wise to spend so much on the cabinet, an economist said the amount is not as important as their performance.

Associated Chinese Chambers of Commerce and Industry of Malaysia socio-economic research centre executive director Lee Heng Guie said it’s more important for the new cabinet to be effective and the priority right now should be to stimulate the economy.

Economist Dr Hoo Ke Ping said the PN cabinet only had one additional ministry compared with the previous government, but the new administration must address issues of overlapping jurisdictions.

The government must pay close attention to the economy at present, especially exports, which are a major factor sustaining the economy as domestic consumers and investors’ confidence continues to slide as it has for the past two year, Hoo said.

He said it will be difficult to grow exports due to the global economic slowdown, but the government must maintain the confidence of both foreign and domestic investors. – March 13, 2020.