‘View govt’s proposal to abolish pension system rationally’
The public should view the federal government’s recent proposal to abolish the civil service pension system and replace it with the Employees Provident Fund (EPF) from a more rational and long-term perspective, said Tourism, Culture and Arts Minister Datuk Seri Tiong King Sing.
The Bintulu MP and Dudong assemblyman said if the new system is not implemented, the government will have to bear RM120 billion in pension expenditure in 2040.
“In this regard, I hope everyone will think deeply. Every year, from the hundreds of billions of ringgit in the budget, a very large part to the tune of tens of billions of ringgit is used to pay civil servants’ pensions.
“If the new system is not implemented, the government will have to bear RM120 billion in pension expenditure in 2040,” he said at Progressive Democratic Party (PDP) Chinese New Year gathering here Saturday night.
Tiong acknowledged that the proposal has aroused heated discussions among the public.
“Some political leaders from the ruling and opposition parties have taken the opportunity to exploit the issue and believe that the government should not make such reforms,” he said.
He added that instead of blindly speculating, the public should think comprehensively about the real meaning behind the reforms that the government is striving for, especially when Malaysia is now in the stage of economic transformation.
“If we want the country’s economic development to break through the bottleneck and boost our competitiveness on the international stage, it is inevitable to implement reforms as the times evolve.
“And of course, it will take some time. Any reform will go through a painful ‘teething’ period before it can proceed smoothly and achieve the expected results.”
Tiong believed that if the review of the civil service pension system could, among others, allow for more access to funds to support the disadvantaged, upgrade rural infrastructure, implement development plans, it will go a long way to create betterment for Malaysians.