Prime Minister Anwar Ibrahim has called on the private sector, particularly companies with substantial profits, to reassess their salary structures and provide more equitable remuneration to employees. This appeal follows the recent public service wage reforms, which aim to ease the financial burden on workers and promote fair compensation across both public and private sectors.
During the 19th edition of the Majlis Amanat Perdana Perkhidmatan Awam (MAPPA) themed ‘Madani Public Service,’ Anwar emphasized the importance of ensuring that private sector wages reflect the new standards set by the government.
“I hope the private sector will review their [salary] schemes, so that the [financial] burden of the workforce can be reduced with a more reasonable remuneration and salary increment scheme, especially for companies that record large profits,”Anwar says.
“There is no reason for monthly salaries to be less than RM2,000,” he stated.
The prime minister highlighted that the newly revised Public Service Remuneration System (SSPA) will see civil servants receiving a salary adjustment ranging from 15% for the implementing, management, and professional groups to 7% for those in top management.
PM Anwar Ibrahim announced that these adjustments would be implemented in two phases, with the first phase beginning in December 2024 and the second in January 2026. He underscored that this comprehensive reform was necessary to address the impact of inflation, which has significantly eroded the purchasing power of civil servants over the past decade.
Anwar also introduced performance-based incentives for civil servants, designed to recognize and reward those who demonstrate excellence and expertise in their roles. Special incentives will be allocated to those in niche areas such as artificial intelligence, cybersecurity, and energy transition, reflecting the government’s focus on modernizing the public service.
Additionally, as a gesture of appreciation for the sacrifices of the Malaysian Armed Forces (MAF) veterans, PM Anwar Ibrahim announced an increase in the Cost of Living Aid (BSH) from RM300 to RM500 per month for eligible non-pensionable veterans.
The prime minister emphasized that the salary adjustment under the SSPA was designed to address the significant rise in the cost of living, including a 21.3% increase in the consumer price index over the past decade, with food and beverage prices rising by 24.8%.
“We think that salaries of civil servants for the past 12 years have only increased by 5.8%, compared to inflation of 24%, so that is why it is very stressful for civil servants, especially those in Grade 26 and below, whose basic salaries are quite low,” he explained.
At the same time, Anwar issued a warning against taking advantage of the situation by raising the prices of goods in response to the salary adjustment announcement.
Source: here
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Anwar Ibrahim is Setting the Stage for Malaysia’s Economic Boom – Forbes
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