Guan Eng welcomes allowance cut, but should be 'decided by cabinet'

Finance Minister Lim Guan Eng has welcomed the proposal by his cabinet colleague to reduce the allowance of ministers and politicians.

"Any proposal that can save money is good as I am the minister of finance," he told a press conference after attending a financial literacy activity at his ministry in Putrajaya today.

Lim (above), however, said the matter is not for him to decide as the proposal will also affect other ministers.

"Since this involved other ministers and ministries, I believe it should be decided by the cabinet instead of me," he said.

Lim was commenting on the proposal by Youth and Sports Minister Syed Saddiq Syed Abdul Rahman (photo) for the government to cut the allowance of politicians and ministers, following the controversial decision to cut the Critical Service Incentive Payment (BIPK) for new doctors, nurses, engineers and other professionals joining the civil service.

Syed Saddiq's view was shared by Economic Affairs Minister Azmin Ali and Rural Development Minister Rina Mohd Harun. 

On Dec 20, the Public Service Department announced that the critical services allowance, which is given to nurses, doctors, engineers, architects and other professionals employed by the government, would no longer be given to new hires next year. 

The proposed cut was aimed at controlling costs after the government approved the hiring of 10,675 personnel for public hospitals and clinics.

The allowance was introduced in 1992 for jobs that were difficult to fill and had low recruitment.

However, the PSD said this was no longer the case for the jobs affected, as applications for the "critical" public service positions far outmatched the number of openings.

The ministers and politicians were then targeted for their allowances.

The move has since been postponed after drawing flaks. 

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