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Improved contractual scheme to replace permanent, pension schemes next year

Last update: 05/09/2019
Datuk Seri Borhan Dolah
PUTRAJAYA, Sept 4 -- Starting next year (2020), new appointments in the public service may no longer be made under the permanent and pension schemes but will be replaced by an improved contractual scheme, said director-general of Public Service Datuk Seri Borhan Dolah.

He said the move was decided at a special public service reform committee meeting on Oct 2018 that wanted the service to be minimised in phases and based on needs as well as reducing the burden of pensions which now reaching RM28 billion.

Speaking to reporters after opening the Conference on Human Resource Management in the Public Sector 2019 here today, Borhan said the new contractual scheme, which is being studied, would offer better pay, welfare and protection.

"The contractual appointment may not enjoy the benefits of the existing permanent and pension schemes such as housing and car loans, but these benefits may be translated into higher allowances," he said.

Borhan said the contractual appointment would be more dynamic and tailored to the less-loyal Generation Y and would give them the option to easily leave the public service after having served for a certain period.

Borhan said that the new scheme was also subjected to the Public Service Act which protects the interests of civil servants, permanent or contractual, to ensure that they would not be terminated easily without being proven guilty.

"So, no one can be appointed on a contractual basis today and tomorrow the service can easily be terminated," he said.

He said the existing civil servants might be given the option to switch to the new contractual scheme.

Borhan said the targeted savings under the new scheme were RM5 billion a year.


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