Allowances cut to allay anger

Malaysian Prime Minister Abdullah Ahmad Badawi, trying to assuage public anger over a steep hike in fuel prices, said yesterday government ministers will take a 10 percent cut in allowances.

Abdullah also said that ministers' overseas holidays will be reduced and mega projects delayed to save costs. Together the measures will result in a saving of $613 million, he said after a meeting to review the impact of high energy prices.

"The government also feels the people's pain and the top leadership should lead by example in facing this challenge. As such, the entertainment allowance for the prime minister, deputy prime minister and ministers and deputy ministers will be reduced by 10 percent," he said.