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Malaysia’s austerity cuts risk slowing growth, hurting public services, says Lim Guan Eng

Lim Guan Eng today warned that proposed austerity measures under Budget 2026 could weaken Malaysia’s economic growth and undermine the delivery of essential public services. In a statement, the Bagan MP said planned spending cuts — reportedly amounting to RM10 billion from the approved RM229 billion operating expenditure — may dampen gross domestic product (GDP) growth, which Bank Negara Malaysia has projected at between 4 and 5 per cent this year. [...]