Retail boss says time for civil service to share the burden as Covid-19 kills revenues

There are some 1.6 million civil servants in the country. The government has not announced any pay cuts despite a dip in revenue caused by Covid-19.

PETALING JAYA: A prominent retail tycoon has asked how a dip in taxes as well as the plunge in the prices of key commodity exports would allow Putrajaya to maintain the salaries of civil servants, unlike the private sector which has announced salary cuts and lay-offs as the financial impact of the Covid-19 pandemic continues.

Ameer Ali Mydin, the managing director of the Mydin chain of hypermarkets, said the government’s revenue would be affected not only by the falling prices of exports such as crude oil and palm oil, but also in the collection of various taxes including the sales and services taxes (SST) due to shuttered businesses and reduced consumer spending.

“Businesses are suffering and everyone is taking a pay cut in the private sector, including those who are self-employed. We are all affected,” Ameer told FMT.

He said his company had already cut staff salaries by up to 50% and completely halted payments to its top directors.

“We don’t have a choice, it’s either we take a pay cut or we die,” he said.

He said many industries have been forced to take drastic measures including retrenching their staff.

Ameer Ali Mydin

However, he said this does not seem to be the case with some 1.6 million civil servants despite the two-month pay cut for Cabinet members recently announced by Prime Minister Muhyiddin Yassin.

“Ministers and their deputies are taking pay cuts, some menteris besar, chief ministers and their excos are taking pay cuts, and that is good.

“But there are still high-ranking government officials who are getting full salaries, including MPs and assemblymen. Anyone earning above RM3,000 should be taking a pay cut,” said Ameer.

He said it was only sensible that civil servants’ pay be reduced as well, adding that the savings could go towards helping the poor who have been most affected by the movement control order.

Ameer said pay cuts for civil servants could be scaled based on their salary level.

He also noted that with the exception of housing loans taken by civil servants through the Public Sector Home Financing Board (LPPSA), there is a moratorium on all other bank loans.

“There is no moratorium on the LPPSA now because civil servants are getting a full salary. If they take a pay cut then, of course, there should be a moratorium for the LPPSA.

“Everyone should share the burden,” he added. - FMT