BINTULU: Starting December this year, civil servants will receive a salary increase exceeding 13 per cent, will be the first revision in a decade to align with the country’s current cost of living, according to a political scientist associate Prof. Dr. Novel Lyndon.
Novel said the government needed to consider its financial capabilities while implementing these changes.
He noted that increasing public sector wages typically influences the private sector to adjust their salary structures accordingly to maintain parity.
“The announcement by the unity government under Prime Minister PMX is timely and necessary.
“This increase is crucial not just for enhancing purchasing power but also for boosting the morale and productivity of our civil servants,” he told New Sarawak Tribune.
Novel also pointed out that, compared to other ASEAN countries, inflation is relatively controlled in Malaysia.
He explained that economic theory generally suggests that salary increments could lead to price hikes.
However, he does not foresee an increase in inflation rates due to this policy.
“The government can mitigate any potential negative impacts by focusing more on domestic sources rather than depending on imports, particularly for food,” he added.
Furthermore, Novel called on the government to tackle market manipulation and break down monopolies, especially in critical sectors like energy, fuel, and rice supply.
On Labour Day recently, Prime Minister Datuk Seri Anwar Ibrahim announced the historic salary raise for civil servants, effective from December 1. This increase is set to be the highest in the history of Malaysia’s public service.
