Malaysia cuts ministers' allowances, delays projects - Reuters

KUALA LUMPUR (Reuters) - Malaysian Prime Minister Abdullah Ahmad Badawi, trying to assuage public anger over a steep hike in fuel prices, said on Monday government ministers would take a 10 percent cut in allowances.
Abdullah also said that ministers' overseas holidays would be reduced and mega projects delayed to save costs.

Together the measures will result in a saving of 2 billion ringgit, ($613 million), he told reporters after a meeting on ways to cushion the impact of high fuel prices.

"The government also feels the people's pain and the top leadership should lead by example in facing this challenge. As such, the entertainment allowance for the prime minister, deputy prime minister and ministers and deputy ministers will be reduced by 10 percent," he said.

Spiralling crude oil prices have driven up the cost of some states' fuel subsidies to near crippling levels.

Malaysia followed India, Indonesia, Taiwan and Sri Lanka last week, raising pump prices and provoking a public outcry and protests by opposition groups. On Monday, Nepal's government said it had sanctioned a rise in fuel prices, and truckers in South Korea vowed to stop work over the high cost of diesel.

Abdullah said the decision to increase the price of fuel was a difficult one, but there had been no choice.

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