Doing away pension scheme: Civil servants, Malays will remain intact

Doing away with the pension scheme will not affect civil servants and the Malays who formed the majority in the service.

The proposal had been studied since the 1990s as there was a need for a new service scheme that doesnt put the nation in bankruptcy and create problems for the next generation.

“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,” said Prime Minister Datuk Seri Anwar Ibrahim when closing the Perak unity government convention, yesterday.

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.

On that note he also confirmed a salary hike for the civil servants.