26 September 2023

MALAYSIA: PM backtracks on contract plan

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MALAYSIA

Malaysian Prime Minister, Dr Mahathir Mohamad is backtracking on elements of the Government’s plan to remove permanent positions from the Public Service, saying the current pension scheme will continue for now.

“We will retain the pension scheme for Civil Servants until a new mechanism is devised to alleviate the burden on the nation’s coffers,” Dr Mahathir said.

However, he stressed the current situation could not continue indefinitely.

“Now, we are also paying pensions to the wives and children of retired Civil Servants who have died,” Dr Mahathir said.

He said this became a burden to the country

“We will continue with the existing pension scheme, but we are still looking for ways so that the Government can afford to do so and the Civil Servants don’t lose out,” Dr Mahathir said.

Recently, Director-General of the Public Service Department, Borhan Dolah said that, from next year, new appointments in the Public Service would no longer be made under the permanent and pensionable scheme and would be replaced with an improved contract scheme.

That has led to a furious response, with one MP, Abdullah Sani Abdul Hamid, saying it was tantamount to betraying the Public Service.

The Congress of the Union of Employees in the Public and Civil Services (CUEPACS) said if the Government planned to abolish the existing pension scheme, it should be open to discussion on how new appointments in the Public Service would be made.

President of CUEPACS, Azih Muda (pictured) said his organisation was concerned over the future of PS employees and wanted to ensure their welfare was taken care of.

“CUEPACS is shocked by Datuk Seri Borhan’s statement that the Government plans to stop hiring permanent and pensionable staff by 2020,” Datuk Azih said.

“If the proposal is implemented, CUEPACS is of the view that the future of young people to serve the Government is no longer a priority.”

Kuala Lumpur, 9 September 2019

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