Press Statement

by Lim Guan Eng

(Petaling Jaya, Tuesday): The long-awaited pay rise for 1.2 million civil servants must narrow the gap between the higher and lower-ranking officers as well as lead to improved delivery, higher efficiency, productivity and good governance. This good news by Prime Minister Datuk Seri Abdullah Ahmad Badawi of the first pay rise for civil servants since 1992 clearly indicates an early general election, possibly by the end of this year.  

To take 15 years before a pay rise is approved is too long when inflation caused by rising fuel prices, electricity tarriffs, water rates or toll rates would have eaten into the real value of their incomes. Ceupacs claim some 400,000 lower level civil servants need to take part-time jobs because their current incomes are grossly inadequate to cover their expenses. To protect the real value of their pay and real income, DAP proposes that such pay revisions should be done on a regular basis every 3 years and not wait 15 years. 

Like other voters, civil servants have to use the opportunity of the elections to get their demands met this year or else they may have to wait for another 5 years next term. Whilst no one would object to the lower-ranking civil servant earning RM 650 a month a pay rise, the government must make commensurate increases to the lower ranks to narrow the yawning gap between the high and low-ranking civil servants.

It is unacceptable and irresponsible for the government to allow the basic salary of lower-ranking officials to be as low as RM 650 per month, which is even lower than the country's poverty level fixed at RM 689 per month. 

The salary of the highest-ranked civil servant in Malaysia is 19.5 times more than his or her lowest-ranked colleague, amongst the worst in the world. According to 2006 data by the United Nations (UN) Public Administration Network Public Service, the differential of 19.5 times is far higher than the 2004 data available for our neighbouring countries. 

The data showed that Indonesia enjoys the lowest differential between the highest and lowest pay of only 2 times, followed by Singapore 3 times, Cambodia 5.5 times, Philippines 9.5 times and Thailand 14.1 times. There is a major policy failure or defective implementation which allowed such a vast differential between as shown below. 

There is a need for a substantial increase for the salaries of lower-ranking civil servants, so that the differential can be at least halved to 10 times, the level of Philippines. For this reason DAP fully supports the proposal of the Congress of Unions of Employees in the Public and Civil Service (Cuepacs) of a pay increment of   40 per cent for support group II (Grades 1 to 16), which makes up the lowest category of public employees, and an increase of 30 per cent for support group I (Grades 17 to 26 and Grades 27 to 40).  

At the same time, Malaysia 1.2 million civil servants are amongst the highest in the world in relation to population. Based on the present population of 26.5 million, the civil service to population ratio is  4.5%. As the figures above show in relation to 2003 data, 4.5% is more than double that of our neighbouring countries. Whilst DAP supports the pay rise despite higher public expenditure, the number of civil servants must be capped if we want to get better value out of our civil service through higher efficiency and productivity. Only when there is less red-tape and unnecessary delays in approvals, can there be good governance from our bureaucrats to spur faster economic growth and higher foreign investment.