Malaysian Prime Minister, Anwar Ibrahim has announced a record hike in civil servants’ pay of more than 13 percent.

In a speech to mark Labour Day on Wednesday, May 1, 2024, Anwar said that 10 billion ringgit ($2.10bn) would be allocated to support the “best increase in history” from December.

Anwar, who is also Finance Minister, said that the salary hike would ensure that civil servants earn a minimum income of 2,000 ringgit ($420) per month.

“Currently the overall minimum income, which includes salary and fixed allowances, is 1,795RM per month,” Anwar was quoted as saying by state-run news agency.

The salary review will be the first in 12 years.

The Prime Minister described the increments as “long overdue” to pre-empt criticism.

The Malaysian government has long been criticised for its bloated civil service, whose emolument often rack up more than a third of federal budgets.

“There will be those who criticise, but I say, when was the last time we had a (salary) review? If they question, ask them how much they are earning,” Anwar said in the speech delivered to staff from various ministries and members of the Congress of Unions of Employees in the Public and Civil Services

Anwar also called on companies making “huge profits” to share their gains by raising wages for their employees.

The Malaysian leader, who last year flagged plans to increase taxes and cut subsidies to shore up the country’s finances, made the announcement amid rising prices and a weakening local currency.

The decline in the value of the ringgit puts pressure on household budgets.

The ringgit has lost nearly 4 percent of its value against the US dollar so far this year.

In February, the currency slumped to a 26-year low, dropping to 4.7965 ringgit per dollar, lower than at any point since the 1998 Asian financial crisis.

While helping exporters to sell their products more cheaply overseas, the currency’s slide has raised the cost of essential imports, including food and fuel.

Anwar has described the currency’s slide as “concerning” but “under control.”

Meanwhile, Public Service Department Director-General, Wan Ahmad Dahlan Abdul Aziz, stated that in line with the announcement of salary increase, all civil servants need to increase productivity and efficiency in delivering services to the people.

He said that the announcement needs to be followed by the delivery of services which meet the needs of, and satisfy the people.

“Personally, this is something very good for civil servants, due to the concern of the government led by Prime Minister Datuk Seri Anwar Ibrahim. We have had no revision (of salary) for more than 12 years,” he said.

Anwar Calls For Swift Establishment Of Gig Workers Commission

Moreover, the Malaysian Prime Minister urged for the establishment of the Gig Workers Commission to be expedited.

He said it is important to pay more attention and concern towards workers in the gig economy sector.

“For civil servants, there are the Public Service Director-General, the Chief Secretary to the Government, Cuepacs (Congress of Unions of Employees in Public and Civil Services), and not to forget the MTUC (Malaysian Trades Union Congress).

“However, certain groups remain unrepresented. That is why the Gig Workers Commission is needed to provide more attention and support (to this group of workers).”
Anwar Ibrahim

Anwar noted that this matter also involves taxi drivers, who have long contributed to the economy but sometimes are left behind in terms of coping with changing times.

“So we must pay attention including to the disabled, women, the elderly, retirees and some former inmates,” he said.

Anwar added that he appreciates the hard work of all workers at various levels including in the gig economy.