26 September 2023

MALAYSIA: Government cool on pay rise hopes

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Malaysia’s Public Service Department (PSD) has put the brakes on growing expectations there will be a minimum wage increase for Government workers, saying there was a need for a “comprehensive study” to be done first.

Director-General of the PSD, Mohd Shafiq Abdullah said the study would have to take in the financial capability of the Government to grant such an increase.

“We know the Government has a huge burden and pays pensions and so on,” Datuk Seri Mohd Shafiq said.

“As for our Civil Servants, there needs to be a comprehensive study before the pay increase.”

He said there could be no link between the Public Service and the new minimum wage of RM1,500 ($A475) announced by Prime Minister, Ismail Sabri Yaakob to be paid by employers of large companies.

Datuk Seri Mohd Shafiq comments came shortly after a former head of Treasury said the Government had to find ways to bring down expenditure on the Public Service.

Sheriff Kassim said Public Service salaries and pensions accounted for about 45 per cent of the total operating budget of the Federal Government, and this was unsustainable.

In an address to the Malaysian Institute of Economic Research, Tan Sri Sheriff (pictured) called for under-performing Public Servants to be offered early retirement, while promotions and recruitment should be based on merit, irrespective of race and religion.

Another speaker, Director of the Social Wellbeing Research Centre, Universiti Malaya, Norma Mansor said recruitment into the public sector should be done more strategically.

“Promotions and training should be towards promoting better talent development,” Professor Mansor said.

Kuala Lumpur, 19 March 2022

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