Malaysia to dismiss thousands of state workers to cut spending

(May 23): Thousands of government workers in Malaysia will lose their jobs and state agencies will be dissolved as Prime Minister Mahathir Mohamad moves to curb spending and debt.

The government will dismiss 17,000 contractual employees and reduce ministers’ salaries by 10%, Mahathir said in a press briefing after his first cabinet meeting in Putrajaya on Wednesday. Contracts, including those for the search of aircraft MH370 and for the Singapore-Kuala Lumpur rail, will be reviewed, he said without giving a timeline.

Agencies, including the regulator Land Public Transport Commission and the Special Affairs Department, which is tasked with advising the state on maintaining public perception, will be dissolved.

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