KUALA LUMPUR (Aug 6): The Prime Minister's Department said it is able to reduce its expenditure by 60% for 2018 after carrying out a cost rationalisation plan.

"For development expenditure, the original allocation approved for 2018 is RM12.26 billion for departments and agencies under the Prime Minister's Department.

"After the rationalisation plan, the cost has been reduced by 60%, bringing the total allocation to RM4.93 billion," Minister in Prime Minister's Department Datuk Liew Vui Keong said in a parliamentary written response dated Aug 1 to Johor Bahru MP Akmal Nasrullah Mohd Nasir.

Akmal had asked on the ongoing savings measures and reduced costs in managing the Prime Minister's Department compared with the previous administration.

As for operating expenditure, there was a cost saving of RM100.15 million or 2% of the total approved amount of RM5.22 billion for June to December 2018.

"This is taking into account the cancellation of several rental and service contracts involving special advisory/special envoys offices and the closing of the National Profession Council (MPN)," it said.

The minister added, however, that the provisions for the Prime Minister's Department for the year will only be finalised when the current rationalisation process has been completed.