2025 : Government Implements Reform Agenda, Enhances Income, Integrity

By Amanina Mohamad Yusof & Norhayati Mohd Akhir

PUTRAJAYA, Dec 12 (Bernama) -- The year 2025 marked the culmination of several major milestones in the government’s reform agenda, driven by the implementation of policies that directly enhance people’s income, improve public service governance and strengthen social well-being.

One of the most significant initiatives was the introduction of the Civil Service Remuneration System (SSPA), which replaced the Malaysian Remuneration System (SSM). The SSPA reorganised the remuneration structure for nearly 1.7 million civil servants, delivering tangible improvements to their well-being and motivation.

Under the new system, civil servants received salary adjustments of between seven and 15 per cent, complemented by wide-ranging enhancements such as the new Maximum–Minimum Salary Schedule (JGMM), improved allowances, upgraded leave benefits and performance-based incentives.

These reforms are also extended to retirees. More than 960,000 pensioners benefited from an allocation of RM1.97 billion for Phase Two of the pension adjustment, effective Jan 1, 2026, further strengthening the country’s retirement safety net.

Overall, the SSPA propels the public service into a new era that prioritises well-being, professionalism and greater efficiency in service delivery, while offering direct benefits to both civil servants and retirees.

In the private sector, the government continued efforts to improve income levels through enforcement of the Minimum Wage Order (PGM), which sets a mandatory minimum wage of RM1,700 per month for all employers, regardless of organisational size, effective Aug 1, 2025.

Non-compliance with the PGM is an offence under the National Wage Consultative Council Act 2011 (Act 732), carrying penalties of up to RM10,000 per employee. Employers may also face an additional fine of RM1,000 per day if the offence continues after conviction, while repeat offenders may be fined up to RM20,000 or sentenced to a maximum of five years in prison.

To reinforce integrity in public administration, the government introduced the Government Procurement Bill 2025, passed by the Dewan Rakyat on Aug 28. It is regarded as the most significant procurement reform in Malaysia’s financial administration history.

The Bill outlines the duties, responsibilities and governance standards for all stakeholders in public procurement. It also establishes a Procurement Review Panel and Appeal Tribunal, enabling procurement decisions—including those made by the Minister of Finance—to be challenged and reviewed.

This reform aims to enhance integrity, reduce leakages and strengthen accountability, including for ministers and former officials.

From a social protection standpoint, Parliament passed the Gig Workers Bill 2025, which provides comprehensive protection for more than 1.2 million gig workers covering welfare, social security and labour rights.

The Bill positions Malaysia as a regional leader in progressive legislation for the gig economy.

Malaysia also achieved global recognition when the Malaysian passport ranked third in the world in the Passport Index 2025, alongside 15 other countries, including Belgium, Germany, France and South Korea.

This ranking allows Malaysians visa-free access to 174 countries worldwide.

To bring government services closer to the people, the government organised eight series of MADANI Rakyat (PMR) Programmes throughout 2025. These programmes aim to enhance public understanding of government policies and initiatives.

Held from Sabah to Melaka, the PMR series recorded over 1.4 million visitors, making it one of the most successful public engagement initiatives of the year.

The programme was organised by the Prime Minister’s Office through the Performance Acceleration Coordination Unit (PACU), with strategic collaboration from federal ministries and state governments.

-- BERNAMA