PUTRAJAYA – Previous governments knew the growing pensions bill is a burden on the country’s finances but only the unity government has the political will to address it, Prime Minister Datuk Seri Anwar Ibrahim said today.
He said the government was committed to addressing the matter and also reiterated that any changes forthcoming would not affect the pensions of existing civil servants.
“This matter has been discussed since the administrations of several prime ministers in the past, and only this government has the political will to address our commitment to pensions in a serious manner,” Anwar said in notes for his address to Finance Ministry staff at an assembly here this morning.
Anwar, who is also finance minister, reiterated that government pension payments would reach RM120 billion by 2040 if nothing was done.
The pensions bill this year, meanwhile, is projected to be more than RM30 billion.
“Payments for pensions and emoluments for this year is projected to be 48% more, or nearly half, of the government’s administrative expenditure,” he said in his talking points.
Government debt, meanwhile, if including other liabilities, stands at RM1.5 trillion or 80% of gross domestic product, Anwar added.
The pensions issue is part of the government’s review of the Public Service Remuneration System (SSPA), and has been the subject of controversy after it was announced that the new policy would see non-pensionable permanent employment for new civil servants.
The Public Service Department also stopped permanent hires on February 1, when all new incoming civil servants will be taken on contract for the interim until the revised SSPA is implemented.
He also said the SSPA was an example of how the unity government was choosing to focus on domestic policies deemed critical for the country. – February 6, 2024