Non-pension scheme needed to avoid bankruptcy, says PM

 

Some developed countries have already abolished the pension system for civil servants, the prime minister said.

IPOH: The government has dismissed allegations that a proposal to abolish the pension scheme for new intakes of civil servants would victimise Malays, who form the majority in government service.

Prime Minister Anwar Ibrahim said the proposal had been under study for a long time as there is a need for a new service scheme to avoid the risk of the country going bankrupt and future generations facing problems.

“It has been studied for many years, if I’m not mistaken since the 90s, but there is no political will to implement it.

“The opposition kept claiming that abolishing the pension will victimise the Malays and that this is a DAP proposal, but they have not presented facts and instead played on religious sentiments,” he said when closing the Perak unity government convention here today.

Anwar said some developed countries had already abolished the pension system for civil servants. Politicians should accept the fact that they would also be affected if the non-pensionable scheme was implemented for new civil servants.

This would include those who would be fielded as candidates in future elections, he said. “It is up to them if they do not want to contest in future general elections because there will be no more pension,” he said.

The government has said that the proposal to place new hires on a non-pensionable scheme would not affect the pension status of existing civil servants.

Anwar also reaffirmed the government’s commitment to raising the remuneration rate for civil servants according to its capability. “We have decided that this matter cannot be delayed,” he said. - FMT