14.03.2012
Malaysia's controversial Public Service Remuneration Scheme (SBPA) was scrapped because it failed to meet the government's commitment of a 7 to 13-per-cent raise across the entire civil service, Prime Minister Najib Razak (picture) said yesterday.
His administration was forced to ditch the scheme last week after it raised the ire of the 1.4 million-strong civil service for only benefiting top government servants while the majority of the civil service was left with paltry salary hikes.
Mr Najib told Parliament that this reason made him order a review of the SBPA just two weeks after it was introduced on Jan 1.
"In my Budget speech last October, I gave the government's commitment based on the principle of a 7 to 13-per-cent salary hike and a raise in annual income of between RM80 (S$33) and RM320.
"But when it was translated into action, it ran off from the decision that was made. That is why we took the decision to cancel SBPA and return to the commitment that I have made," he said in response to Opposition leader Anwar Ibrahim.
Mr Najib said last Thursday the existing Malaysian Remuneration System (SSM) would be kept with improvements, while the salaries of the Chief Secretary to the government and top-tier civil servants in the "Premier Service I" category would only be adjusted by 7 per cent.
Civil servants in the management and professional groups and those of Grades 1 to 54, in turn, would see their salaries hiked by 13 per cent across the board, he said.
It was revealed recently that under the SBPA, the Chief Secretary would draw a salary of RM60,000, while those in the "Premier Service" category would rake in RM36,000, a vast difference from those in the lower pay grades, some of whom were only given increments as low as RM1.70.
The revelation following the obvious disparity between the salaries of top civil servants and those in the lower grades had ignited anger and disapproval in the civil service - a key vote bank for the ruling Barisan Nasional coalition - ahead of a general election that must be called by May next year.
Although the scheme was scrapped last Thursday, it raised questions about the internal processes within those in charge of the pay review and the Cabinet's competency to digest beyond the headline figures presented to it when the entire wage scheme was being structured.
But Mr Najib also defended the initial introduction of the SBPA, saying at least 13 meetings were held last year with the Congress of Unions of Employees in the Public and Civil Services.
He said this led to a Memorandum of Understanding on the introduction of the new scheme being signed by the civil service union and the government on Dec 28 last year.
His administration was forced to ditch the scheme last week after it raised the ire of the 1.4 million-strong civil service for only benefiting top government servants while the majority of the civil service was left with paltry salary hikes.
Mr Najib told Parliament that this reason made him order a review of the SBPA just two weeks after it was introduced on Jan 1.
"In my Budget speech last October, I gave the government's commitment based on the principle of a 7 to 13-per-cent salary hike and a raise in annual income of between RM80 (S$33) and RM320.
"But when it was translated into action, it ran off from the decision that was made. That is why we took the decision to cancel SBPA and return to the commitment that I have made," he said in response to Opposition leader Anwar Ibrahim.
Mr Najib said last Thursday the existing Malaysian Remuneration System (SSM) would be kept with improvements, while the salaries of the Chief Secretary to the government and top-tier civil servants in the "Premier Service I" category would only be adjusted by 7 per cent.
Civil servants in the management and professional groups and those of Grades 1 to 54, in turn, would see their salaries hiked by 13 per cent across the board, he said.
It was revealed recently that under the SBPA, the Chief Secretary would draw a salary of RM60,000, while those in the "Premier Service" category would rake in RM36,000, a vast difference from those in the lower pay grades, some of whom were only given increments as low as RM1.70.
The revelation following the obvious disparity between the salaries of top civil servants and those in the lower grades had ignited anger and disapproval in the civil service - a key vote bank for the ruling Barisan Nasional coalition - ahead of a general election that must be called by May next year.
Although the scheme was scrapped last Thursday, it raised questions about the internal processes within those in charge of the pay review and the Cabinet's competency to digest beyond the headline figures presented to it when the entire wage scheme was being structured.
But Mr Najib also defended the initial introduction of the SBPA, saying at least 13 meetings were held last year with the Congress of Unions of Employees in the Public and Civil Services.
He said this led to a Memorandum of Understanding on the introduction of the new scheme being signed by the civil service union and the government on Dec 28 last year.
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