The future of jobs? KJ says to prepare for less security in civil service

At a panel discussion today on the future for jobs and careers, former youth and sports minister Khairy Jamaluddin today said Malaysians should be prepared for lesser security of tenure and income.

Unlike existing job security concerns of contract workers, Khairy said there will soon come a time when the process of automation and the growing "gig economy" could impact even the civil service which is often regarded as offering high security of tenure and income.

"I am of the view that people who have security of tenure have to imagine a future where there is no security of tenure," said Khairy who cited the example of professors from Cambridge University who are paid based on the number of lectures they deliver.

A gig economy is a free market system in which temporary positions are dominant and organisations contract independent and freelance workers for short-term engagements.

"That is the model of the future. I (also) want to bring in a huge sector which needs to undergo this change [...] the public sector," said Khairy who quipped that fellow panellist Tony Pua, political secretary to Finance Minister Lim Guan Eng, will not raise this due to his government position.

Khairy pointed out the government in the future may need to reevaluate available positions within the civil service together with the current practice of paying lifetime pensions which currently make up approximately one-third of federal expenditures.

He said there were many positions which could be automated but the government was obliged to retain those already within the civil service due to the promise of lifetime pensions.

"But in the future, we will increasingly be able to give out work being done by the civil servants to either automation or contingent workers.

"Once that happens, then the whole notion of social security in 10 years or 20 years will have to change," said Khairy who urged the government to come up with policies to prepare the new generations entering the workforce for less security of tenure and income.

"You may not be able to do that with people in service already, but certainly what the government can think about now are the new recruits into the civil service who cannot possibly enjoy the same benefits as those who are in the civil service now.

"Because the government will not be able to afford it," said Khairy.

Panel moderator PWC Network partner Edward Clayton said that Khairy's response on the government's role to protect people in the gig economy was surprising to which the Rembau MP quipped that as an opposition lawmaker, he was now free to speak his mind 

Responding to Khairy, Pua said the process of equipping the people for future of work should begin in schools while at the same time existing policies be adjusted to accommodate changes brought on by the gig economy.

He cited the example of the government's move to protect traditional taxi drivers in their rivalry with new e-hailing drivers before discovering that the latter had larger strength in terms of both supply and demand.

"So the government needed to find a balance on how to encourage the old guys to upgrade themselves to fit into the gig economy. We need to equalise the platforms between the two worlds," he said.

Other panellists for the session organised as part of the "Future of Work Conference 2019" were Sorga Ventures co-founder Shareen Abdul Ghani, InvestKL acting CEO Mohammad Azmi Zulkifli and Sirim Bhd chairperson Ahmad Tajuddin Ali. - Mkini