Impending huge public sector pay hike gets economists thinking about where the money is coming from

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Civil Servants Salary Increase News

Anwar Ibrahim,Civil Servants,Civil Service Pay System Revamp

KUALA LUMPUR, May 8 — Economists believe the public will watch closely how Prime Minister Datuk Seri Anwar Ibrahim’s government plans to fund the record rate pay hike for its...

Rapid Rail: KL Sentral-Medan Tuanku monorail service suspended, feeder bus and trains deployed after tree falls on track along Jalan Sultan IsmailPrime Minister Datuk Seri Anwar Ibrahim delivers his keynote address during the National Labour Day celebration at Putrajaya International Convention Centre in Putrajaya, May 1, 2024.

The Anwar government spent over a third of its operating expenditure on salaries, pensions, and allowances under Budget 2024, some RM100 billion. While the wage bill to gross domestic product is said to be lower compared to other countries with the same income level, the ratio of emolument-to-revenue is among the highest.

Zuohair Rosli, an economist, said savings from targeted assistance is likely the best way to fund the civil service pay hike. There are some talks that the government could continue borrowing to finance the pay hike, but several economists have warned against it.

Anwar Ibrahim Civil Servants Civil Service Pay System Revamp

 

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