Malaysia's Prime Minister Anwar Ibrahim has announced that the salaries of civil servants will be raised by more than 13 per cent, starting from December 2024.

The announcement was made at an event in Putrajaya marking Labour Day in Malaysia.

He added that this increment will be the highest ever given to Malaysia's civil servants and would involve an allocation of over RM10 billion (S$2.86 billion), Malaysian media reported.

The government is currently finalising plans to ensure that civil servants on the lowest end of the scale will receive a minimum monthly salary of RM2,000 (S$573), up from the current figure of RM1,750 (S$501).

Increment will be tied to performance

In addition, the increment will be tied to a civil servant's performance, Anwar said.

He was quoted as saying, "“(Civil servants) will also be monitored (to see if) they are lazy. If their work record is unsatisfactory, they will not be given the reward."

Malaysia's Works Minister, Alexander Nanta Linggi, said he was confident that the announcement of the salary increase would boost the motivation of civil servants.

Anwar also called on private firms to follow the government's lead by increasing the salaries of their employees.

He said:

"Some companies make a lot of money but where does this huge profit come from? From (the workers’) productivity. Give some of it (to the workers). If the company makes hundreds of millions in profit, give a few hundred to the workers."

Increment comes amidst a decline in the value of the ringgit

Aljazeera reported that the salary increase comes amidst a decline in the value of the ringgit, having lost almost four per cent of its value against the U.S. dollar this year.

It fell to a 26-year low in February 2024.

Malaysia also recorded growth at a rate of 3.7 per cent for 2023.

This was a drop of five per cent from a 22-year-high of 8.7 per cent in 2022.

The country's central bank has since forecasted economic growth to be between four to five per cent for 2024.

Top photo via Anwar Ibrahim/Facebook

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