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Media Statement

by Lim Guan Eng

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(Petaling Jaya, Tuesday): The announcement by Prime Minister Datuk Seri Abdullah Ahmad Badawi of a salary increase of between 7.5 per cent and 42 per cent from July 1 2007 for civil servants, the police and the armed forces indicates an early general election. Abdullah also announced a 100 per cent increase in the cost of living allowance (Cola), which will be RM300, RM200 and RM100 depending on location. In giving the first pay rise since 1992, Abdullah is not taking chances and pulling out all stops to win the general elections. 

Abdullah said the pay rise could be given because of the average growth rate of the Gross Domestic Product of 5.6%, the effect of fuel prices on lower income groups, trade volume that had reached RM1 trillion, positive trends of Bursa Malaysia which reached record highs and improved tax collection. DAP hopes that the RM 8 billion extra spent for the salary increase which is derived from higher tax collections will be accompanied by good governance showing a corresponding rise in performance, integrity, efficiency, productivity and better service to taxpayers. 

For too long have the public suffered from a small group of civil servants who victimized them with delays or poor service or even acts of corruption. DAP supports such a pay rise because improving integrity and performance will not work if their basic pay is not even above the poverty line. In fact the 15 year wait for a salary rise is too long and such salary review should be shortened to three yearly periods.  

If their basic pay is lucrative, there is no need to turn to such corrupt practices to feed their families and focus can be given on improving the government’s poor delivery system. How inefficient and poor the performance and delivery system of the government is highlighted by the faulty electrical wiring and shameful leaking roof in Parliament on April 2005 in the Dewan Rakyat Chambers that disrupted proceedings and in the media center on 9 May 2007 despite the nearly RM 100 million spent on renovation works?   

Such systematic failure and breakdown of the delivery system as shown by expensive buildings which are defective upon immediate completion such as:

1.    On April 11, a burst pipe at the Immigration Department headquarters in Putrajaya caused widespread damage and brought daily operations to a halt. Operations resumed at 9am the next day;

2.    On April 28, part of the ceiling of a multi-purpose hall at the Entrepreneurial Development and Co-operative Ministry in Putrajaya collapsed, causing a water pipe to drop and burst;

3.    On April 30, two parts of a ceiling panel collapsed and there were deep cracks on the walls the new RM 270 million Jalan Duta Court Complex, the second largest complex in the world;

4.    The Sultan Mahmud Airport in Terengganu was closed for night landings on two nights on 5 & 6 May 2007 because of a malfunction of the runway navigation lights; and

5.    On 7  and 9 May 2007 hearings in the same Jalan Duta courts ended early when the air-conditioning malfunctioned and there was a electricity blackout respectively. 

That civil servants are rarely disciplined appear to give them immunity and make the public helpless from such excesses. The government should be more rigorous in taking action and strictly discipline non-performing civil servants who breach rules, caused public loss of funds, are rude or give poor service to taxpayers that caused unnecessary hardship to the people.  

Distributing RM 5,000 to the 40% of Malaysian households that do not earn the average household monthly income of RM 3,249 can remedy BN’s failure at wealth distribution and reduce the financial burden of rising inflation caused by fuel, electricity, water and toll hikes

Though such a pay rise is welcomed, it is still not sufficient for lower-income civil servants and 557,033 pensioners where the amount received is still below the poverty level.  The lowest paid are those in the Support Group 2 comprising 319,336 staff with minimum qualifications of Penilaian Menengah Rendah (PMR) or Sijil Rendah Pelajaran (SRP). 

With the 35% increase, the lowest basic salary (received by Grade N1 cooks) will be RM649.15 a month compared with RM480.85 before the increment.  This basic salary is still below the poverty line of RM691 in the peninsula, RM888 in Sabah and RM765 in Sarawak. Including fixed allowances is not reasonable as these are required for contingency expenses such as medical bills and other emergencies. No wonder so many civil servants are forced to borrow from loan sharks, work two jobs or engage in other unhealthy activities just to survive.  

DAP suggests that the minimal basic wage for civil servants and pensions be fixed at above RM 700. It is embarrassing that our civil servants are paid below the poverty level and questions the government’s commitment to eradicate poverty.

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. Salaries of the lower levels must be increased dramatically if the government wants to bridge the salary differential to make it fairer and more equal to civil servants.  

Despite the salary increase, the salaries of most Malaysians are still far below the national average monthly household income RM3,249 (Ninth Malaysian Plan). DAP can not accept such failure of wealth distribution where only the rich prosper whilst the vast majority are marginalized.   

To ensure economic justice to ordinary Malaysians, the government should be distributing RM 5,000 yearly to the 40% of Malaysian households that do not earn the average household monthly income of RM 3,249. This can remedy BN’s failure at wealth distribution and reduce the financial burden of rising inflation caused by fuel, electricity, water and toll hikes.