Privatisation policy still relevant after 36 years, says Dr M

KUALA LUMPUR: Prime Minister Dr Mahathir Mohamad today said the 36-year-old national privatisation policy is still relevant in addressing problems related to the oversized civil service.

Mahathir (PH-Langkawi) said in 1983, the government had introduced the policy which concerns the role of the private sector in developing the country.

Through the policy, he said, the government successfully reduced its financial burden, increased efficiency and work productivity, boosted economic growth and ensured the efficient distribution of resources, among others.

He gave the example of Telekom’s privatisation, where staff were moved to a private company resulting in a reduction in the number of government workers and better remuneration packages for workers.

“We find that this strategy is still relevant in tackling the issue of an oversized civil service, which has burdensome financial implications,” he said.

“Focus must be given to the increase in productivity and optimal use of labour.”

He said the government realised that with the reduction in civil service would come problems of unemployment, which would lead to social problems.

“This is why we need to develop, for instance, the manufacturing industry, so that more can move away from working with the government and into the private sector.”

He added that this would increase their ability for productivity compared to that of government officers.

Mahathir was responding to Ismail Mohamed Said (BN-Kuala Krau), who had asked for the rationale behind his proposal to reduce the number of civil servants, and whether the government intends to raise the salary scale for this group as approved by the previous government in the 2018 budget.

Mahathir said the government would ensure that those affected secure job opportunities in other sectors before any reduction in the civil service takes place.

He added that the government would prepare a holistic plan to ensure that the transition does not affect the management or running of the country.

“The government sector should focus on drafting key policies and determining the direction and provision of services, not be actively involved in economic and trade activities in the country.

“With the latest in technological developments, the government believes that the civil service will be more productive when duplications can be reduced, wastage gotten rid of, resources distributed more efficiently, and labour replaced with information technology.”

Mahathir, who is Pakatan Harapan chairman, also noted what he called the tendency of the previous government to raise the salaries of civil servants “in efforts to buy their loyalty”, saying this had resulted in an increase in government expenditure.

This in turn contributed to a rise in cost of living, with the private sector following in the footsteps of the government sector, he said.

To a supplementary question by Ismail, Mahathir said the present government intends to do away with setting up unnecessary bodies and giving big salaries.

“We find that the previous government set up different bodies and gave big wages. There are those who took home tens of thousands a month. This resulted in an increase in cost.

“We will do away with this,” he said. “There are those who have big paycheques but whose service is not needed. This was supposed to have improved the country’s economic condition, but in truth it did not benefit the country.”

He said when the need arises for additional workers, they will hire new ones, but not through wasteful means. - FMT