Najib vows large pay hike for civil servants

KUALA LUMPUR: Prime Minister Najib Razak has promised 1.46 billion ringgit (11.8 billion baht) in salary hikes to Malaysia’s civil servants, a key vote bank for the ruling coalition in a looming general election.

Malaysia’s 1.6 million civil servants have traditionally been supporters of the ruling Barisan Nasional coalition. However, the rising cost of living has been a concern for many, with some officials warning they could turn against the party if the issue is not addressed.

Scandal-plagued Mr Najib needs to consolidate support for his coalition to stave off an unprecedented challenge from his former mentor turned opposition leader, Mahathir Mohamad.

“The government has agreed to increase the salaries amounting to one service year for all 1.6 million civil servants ... with an additional 1.46 billion ringgit from July 1,” Mr Najib said.

Mr Najib promised a one-time payment of 1,500 ringgit in October for civil servants and 750 ringgit for government retirees as part of the government’s 2018 budget. Civil servants saw a salary hike of between 7% and 13% in 2012 ahead of elections the following year.

Mr Najib faces a tough contest in the upcoming polls — which could be called in days — amid a multi-billion dollar scandal at state fund 1MDB. Mr Najib and the fund have denied any wrongdoing.