Friday, January 26, 2024

Muhyiddin opposes govt move to recruit civil servants via contracts

 


Perikatan Nasional chairperson Muhyiddin Yassin has expressed his disagreement with the government’s decision to recruit new civil servants via a contract appointment system, a move described by Deputy Prime Minister Ahmad Zahid Hamidi as a temporary measure.

To overcome the problem of the country's fiscal burden, the government should focus on efforts to increase the country's revenue by encouraging investment and boosting economic growth, the former prime minister said.

"Civil servants are the backbone of the state's capacity which proves to be important when the country faces a crisis.

"That is why Malaysia became one of the earliest countries to get out of the Covid-19 epidemic,” he claimed in a statement last night.

On Tuesday, Public Service Department (PSD) director-general Wan Ahmad Dahlan Abdul Aziz said the system will take effect from Feb 1, adding that it is expected to reduce the country’s fiscal burden.

Muhyiddin insisted that any new policy on the appointment of public officials should be implemented carefully so as not to disrupt the public service sector.

"The issue of civil servant pension payments that increase the country's fiscal responsibility has been ongoing for a long time and requires a thorough solution,” he said.

He claimed that most of the country’s 1.6 million civil servants belong to critical sectors including security, healthcare and education.

"Imagine if we lack doctors, nurses, police, soldiers, teachers, law enforcers, civil defence personnel and other related departments.

“Every decision and move decided in Putrajaya may not necessarily be implemented comprehensively and effectively throughout the country,” he said.

Liability for pension payments

Yesterday, Zahid said the recruitment of civil servants on a contractual basis is a temporary measure pending the cabinet’s approval of a new policy of non-pensionable permanent employment.

Zahid also claimed that the government’s liability for pension payments will hit RM120 billion by 2040 if the current policy for hiring civil servants continues.

Deputy Prime Minister Ahmad Zahid Hamidi

He assured civil servants that those hired under the existing policy would receive their pensions upon completion of their service.

The shift is part of a broader move away from traditional pensions, he said, adding that contribution rates for the Employee Provident Fund and Social Security Organisation schemes will be aligned with those in the private sector.

"Therefore, the long-term approach is to implement this new system for newly appointed civil servants, while the existing ones will continue with the current system, which includes pension benefits.

"The announcement of specific dates for the implementation will be made by the chief secretary (Mohd Zuki Ali), and it is expected to take effect this year,” said Zahid. - Mkini

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