This article first appeared in The Edge Malaysia Weekly on February 13, 2023 - February 19, 2023

Being in the bad books of members of parliament (MPs) is not exactly the flavour of any prime minister, let alone Datuk Seri Anwar Ibrahim.

But he is taking a leap of faith that the MPs will support him when he tables the budget on Feb 24, even after announcing that their annual allocation would be cut. Towards this end, Anwar had said that the annual allocation would be cut by some 65% as part of efforts to better control the country’s finances.

The decision drew flak from MPs on both sides of the fence.

Some MPs claim it will hinder efforts to develop the constituencies. To be sure, voters in less developed constituencies often demand that their MPs provide a helping hand in all sorts of things. They are deemed to be walking ATMs, paying for everything from weddings to water bills and even breakfast.

Having said that, annual allocations to MPs typically range between RM3 million and RM4 million, depending on the government’s finances. 

The allocations comprise three parts. First is the allocation of between RM1 million and RM1.5 million for welfare and social services and the second is RM300,000 for service centre operations. These two components of the allocation are intact.

The one affected is the third — an infrastructure fund of RM2 million, which MPs are allowed to spend on anything, including repairing dilapidated school buildings and damaged bridges and roads. The RM2 million allocation for all 222 MPs amounts to RM444 million. This sum could certainly be managed differently.

Considering that the prime minister is going ahead with the cuts despite knowing it is unpopular, however, does this signal that he is planning an austerity budget with allocation cuts even to MPs?

Further, the move appears to be a precursor to the shifting of the load and responsibilities of infrastructure development and maintenance from the MPs to the local governments.

Anwar, in confirming the decision, said the spending on infrastructure could be coordinated by the District and Land Office and the state development officer.

Of course, some MPs point out that it takes time to apply for funds from government agencies or departments.

Teething issues aside, it is high time that infrastructure spending is centralised. At district level, infrastructure projects are the responsibility of local governments while the state government has funds for road maintenance.

The MPs could probably spend more time nudging the local authorities and the state to spend on infrastructure instead of depending on money from the federal government.

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