MALAYSIA
All new appointments to the Malaysian Government are to be by contract, with existing permanent positions gradually abolished, the Director-General of the Public Service Department, Borhan Dolah (pictured) has announced.
He said the move had been decided by a special Public Service Reform Committee meeting in October 2018, which had also decided the Government workforce would be reduced in phases.
Datuk Seri Borhan said another aim of the Committee was to cut the cost of Public Service pensions, which is now standing at MYR28 billion (A$9.7 billion).
He said the new contractual scheme would offer better pay, welfare and protections.
“Contractual appointments may not enjoy the benefits of the existing permanent and pension schemes such as housing and car loans, but these benefits may be translated into higher allowances,” Datuk Seri Borhan said.
“Contractual appointments will also be more dynamic and tailored to Generation Y and will give them the option to easily leave the Public Service after having served for a certain period.”
He said the new scheme would also be subject to the Public Service Act, which protects the interests of PS employees, permanent or contractual, to ensure their services are not easily terminated if no wrongdoing is found.
Datuk Seri Borhan said existing PS staff might be given the option to switch to the new contractual scheme, which he thought would save MYR5 billion (A$1.75 billion) a year.
He also announced a plan merge the Public Service Department and the Public Service Commission into one organisation.
Kuala Lumpur, 6 September 2019
