Cabinet has resolved to reduce the base salary of its members by 10 percent as part of the new government's austerity measures.

"This proves that we are concerned over the government's financial issues," Prime Minister Dr Mahathir Mohamad told the press after chairing his first cabinet meeting this morning. 

He said the cuts will be on their base salaries.

Mahathir added that cabinet will not get a pay rise despite being paid lower than top civil servants.

"This is a habit of mine. When I first became prime minister (in 1981), the first thing I did was to cut the salaries of ministers and senior civil servants," he said.  

However, this time pay cuts for top civil servants such as the chief secretary to the government will be voluntary.

"It is up to them if they want to contribute at lessening the national debt. But we are not forcing them," he said.