Kuala Lumpur: New laws governing the salaries of all public sector workers and their pensions will apply to all future political appointments, Prime Minister Datuk Seri Anwar Ibrahim said Friday.
But Anwar, who is also Finance Minister, said the proposed salary and pension schemes will be taken to Parliament for a decision on the appropriate steps to be made.
“All prior governments had been warning us that the nation’s economy can’t survive if change isn’t done. Before we reject these proposals, let’s listen to the suggestions, give our opinions, improve on it and debate their effectiveness and only after that we’ll decide what to do,” he said.
Anwar was commenting on Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi’s remarks last Wednesday that newly appointed civil servants will no longer receive pensions under the traditional government scheme but will have to contribute to the Employees’ Provident Fund and the Social Security Organisations in order to get them.
He said that whatever salary and pension scheme that is decided for public sector workers will also apply to all political appointees to government-linked companies.
“All decisions made for public servants will also apply to politicians. Meaning, if we start this on February 1, 2024 for all new intakes then the same applies to all new political appointees,” Anwar said.
He said that the government will look into how the proposed new salary and pension schemes will affect future heads of government, including the state governments, and ministers.
“As for menteri besar, ministers and prime ministers, we can also study that as it’s in the Constitution but we can’t go backwards or be retrospective.
In his reported remarks, Ahmad Zahid said that the proposal was to ease the government’s financial burden by reducing pension payments which are expected to reach RM120 billion in 2040 without any changes to the system.
As such, he said the government would introduce a new civil service hiring policy, which will also include a new pension scheme.
