MAY 5 — When former prime minister Datuk Seri Abdullah Ahmad Badawi announced a pay package increase between 7.5 per cent to 35 per cent for more than one million civil servants on May 21, 2007, he said that the strong growth of the country’s Gross Domestic Product over the past five years, averaging 5.6 per cent annually, was the first factor considered by the government in determining the quantum of the pay hike.

Growth in the private sector investment and the external trade volume had also surpassed the RM1 trillion mark.

“All these have allowed interest rates, inflation, and unemployment to remain low. The Bursa Malaysia Composite Index also reflects the country’s tremendous economic growth, reaching its highest level recently,” he said.

The then prime minister said the second factor was the need to attract and retain qualified, highly motivated, and performance-driven human capital in the civil service.

The third factor was the concern about the rising cost of living due to the hike in global oil prices which had affected those in the lower income bracket.

The fourth factor, Abdullah said, was the government’s affordability which was aided by a marked increase in tax collection and a more prudent execution of expenditure.

“In fixing the quantum, the government is always mindful of its repercussions on the country’s financial position. Any salary increase will also involve pension calculations and certain allowances.

“The quantum has been decided carefully and prudently. The government was able to reduce the budget deficit from 5.3% to 3.5% last year and we’ll continue with this prudent fiscal management,” Abdullah added.

The salary increase involved an additional expenditure of RM8 billion annually.

When prime minister Datuk Seri Anwar Ibrahim announced on Wednesday (May 1) that the government would increase the remuneration of civil servants by more than 13 per cent this year, he gave the assurance that the projected salary adjustment, estimated to cost over RM10 billion from next year onward, was feasible with disciplined financial oversight.

So, increments in civil servant salary are feasible with prudent and disciplined fiscal management.

If the salary increase is feasible, why would one suggest that the budget to provide for the increase might not be passed?

When former prime minister Ismail Sabri Yaakob in August 2022 announced several incentives for civil servants including an additional RM100 to their annual salary increment (KGT) and special financial assistance (BKK) of RM700 for 2023, involving a financial implication of RM1.5 billion, no one suggested that the budget for the year might not be passed. 

https://www.malaymail.com/news/what-you-think/2024/05/05/if-salary-increase-for-civil-servants-is-feasible-why-would-one-suggest-the-budget-for-it-might-not-be-passed-hafiz-hassan/132626