KYOTO: The government will retain the pension scheme for civil servants until a new mechanism is devised to alleviate the burden on the nation’s coffers, says Tun Dr Mahathir Mohamad.
The prime minister said no decision has been reached yet on the matter, and it has not been discussed by the cabinet.
However, he acknowledged that pension payments have become a huge financial burden.
“Now, we are also paying pensions to the wives and children (of deceased retired civil servants). This all becomes a burden to the country,” he said.
The government’s pension bill, he said, was also burdened by the previous administration's 25 per cent salary increment for civil servants, which he said was done without taking into account the government’s financial strength.
“During (former prime minister Datuk Seri) Najib’s (Razak) era, salary went up as much as 25 per cent. When that happens, the pension bill rises too.
“We will continue with the existing pension scheme, but we are still looking for ways so that the government can afford to do so and the civil servants don’t lose out,” he told Malaysian media on the final day of his visit to Japan.
Recently, Public Service Department director-general Datuk Seri Borhan Dolah said that from 2020, new appointments in the public service might no longer be made under the permanent and pensionable scheme, and would be replaced with an improved contract scheme.
He said the move was decided at a special public service reform committee meeting on Oct last year, which aimed to see the 1.7 million-strong civil service trimmed in phases, and reducing the burden of pensions which now stands at RM28 billion annually.
On another subject, Dr Mahathir said Indian Prime Minister Narendra Modi did not make any request for the extradition of controversial preacher Dr Zahir Naik when the two leaders met in Vladivostok, Russia recently.
Modi, he said, only mentioned Zakir once but did not elaborate on the problem faced by India.
“There was nothing, Modi just mentioned his name but did not request anything from me.
“He didn’t even talk about the problems faced by India and what he wants from Malaysia,” said Dr Mahathir.
He said Modi only raised the issue of Kashmir during their meeting.
Indian newspapers had reported that Modi raised the issue during his hour-long meeting with Dr Mahathir ahead of the Eastern Economic Summit.
Zakir, a Mumbai native who has permanent resident status in Malaysia, is under probe for a series of allegedly inflammatory speeches.
He is currently banned by the police from delivering speeches nationwide.