KUALA LUMPUR - Prime Minister Mahathir Mohamad has hit the pause button on a plan to cut Malaysian civil service allowances for new government hires, after a strong backlash that included nearly 100,000 people signing an online petition.
The plan was to come into effect on Jan 1, but sparked anger from public healthcare workers who would be among those most badly affected.
The Public Service Department (JPA), which oversees the civil service, issued a circular on Dec 20 outlining the allowance cuts on nine items including what it calls Critical Services Incentives Payment - a benefit provided to civil service professionals. The cuts are meant only for new hires, with the perks retained for current employees.
In a video posted on Facebook on Friday (Dec 27), Youth and Sports Minister Syed Saddiq Abdul Rahman said: "The prime minister agreed to delay the JPA circular on critical allowance and the cabinet will discuss this issue in its first meeting next year in January".
Mr Syed Saddiq, Health Minister Dzulkefly Ahmad and senior government MP Anwar Ibrahim were among those who have added their unhappiness to the plan, which was approved by a special Cabinet committee and Tun Mahathir. The Cabinet was informed of this decision.
The depth of unhappiness can be gleaned from the online petition started by the Malaysian Medical Association (MMA) on Christmas eve calling for the reinstatement of the critical allowances.
The petition has garnered more than 93,000 signatures by Friday afternoon, just four days after its launching.
Wrote one petitioner, Mohammad Danial: "It is not fair that us new doctors will have the same working hours and same workload but a different pay scheme".
The critical allowances are an incentive payment on top of the monthly salary, and ranges from five to 15 per cent of a month's pay cheque. For healthcare professionals such as doctors, pharmacists and lecturers, a flat rate of RM750 (S$245) applies. Nurses receive the highest allowance percentage.
The JPA in a statement released on Thursday (Dec 26) defended its decision, saying the incentive was part of a "non-permanent" programme that can be retracted once the allowances no longer fulfills criteria. which includes urgent jobs that needs to be filled.
Apart from those in healthcare, a total of 33 professions such as government architects and legal officers will see their allowances removed, as will entertainment allowances to private secretaries, and English proficiency incentives.
The JPA is implementing the move to help the cash-strapped Pakatan Harapan (PH) government.
The department said the current burden on government for critical allowance payout is nearly RM1 billion this year, and will exceed that amount next year.
By eliminating the critical allowance for new hires, the government would save RM79 million next year, and RM89 million in 2021.
The ruling coalition has said the government's total debt has breached RM1 trillion. The PH government's removal of the unpopular Goods and Services Tax (GST) abd bringing back the Sales and Services Tax (SST) has brought in lower government revenues.
There is an additional headache to the issue. Most of the 1.71 million civil servants are Malays, thus piling pressure on PH to resolve this issue quickly, as the ruling coalition has been trying to wean Malay voters away from opposition parties Umno and Parti Islam SeMalaysia.
Opposition lawmakers such as former premier Najib Razak took to social media to attack the government's plan, posting on Friday (Dec 27): "Looks like doctors, nurses and other professionals are a burden to the PH government. That is why the allowances are terminated".
Datuk Seri Anwar had on Thursday (Dec 26) urged the Cabinet to discuss the issue in its first meeting next year.
"The government should take into account the anxiety and worry that has been brought up by the people," he said in a statement.
