KUALA LUMPUR: The first phase of the rationalisation of government offices abroad will begin on Jan 1, said Foreign Minister Datuk Seri Mohamad Hasan.
When tabling the 2025 Budget in the Dewan Rakyat today, Prime Minister Datuk Seri Anwar Ibrahim said the Public Service Department and Wisma Putra had identified that 64 out of 126 overseas offices were not operating under one roof.
Therefore, these offices would be relocated to chancery buildings or merged with nearby offices to cut costs and optimise resources.
Mohamad said PSD would spearhead process, with the help of the Foreign Ministry.
"The rationalisation process is at its first phase, focusing on offices in the economic cluster, such as the Malaysia External Trade Development Corporation, Malaysian Investment Development Authority, Tourism Malaysia, and the Agriculture and Food Security Ministry.
"The 64 offices identified in the 2025 Budget are operational but not housed in the same premises as Malaysia's embassies, high commission, or consulates general.
"The first phase of the process is planned to start on Jan 1," he told the New Straits Times.
However, Mohamad said that it was still too early to estimate the cost savings from this consolidation.
"There are several factors to consider, including the existing office rental contracts, penalties for early termination, the contracts of locally recruited staff, and whether the chancery buildings have enough space to accommodate these offices," he said.
He added that some of these offices were in cities that did not host Malaysia's foreign mission, which presented additional logistical challenges.
Mohamad said the government was mindful of gradually reducing the fiscal deficit.
He said the scope of the Sales and Services Tax (SST) would be expanded to include imported non-essential items and commercial services.
"At the same time allocation for the cash transfer programmes such as Rahmah Cash Aid (STR) and Sumbangan Asas Rahmah (Sara) will be raised from RM10bil to RM13bil.
"Meanwhile, the minimum wage will be raised from RM1,500 to RM1,700 from Feb 1, 2025."