Malaysia govt cuts costs after fuel rise

Updated June 10, 2008 14:19:18

Malaysia has unveiled a number of government cost cutting measures aimed at softening the blow from recent fuel price increases.

The price of fuel is up 41 per cent after the government cut subsidies last week.

Prime Minister Abdullah Badawi says his government will make cuts of $US612 million.

He says official overseas trips will be limited, purchases of assets will be deferred, and the entertainment allowance for ministers will be cut.

The prime minister says he understands the suffering of the people and hope the measures will help.

Mr Abdullah was punished in March elections when voters turned against the ruling coalition.

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