Call for top leaders, Cabinet ministers to lead in abolishing pension scheme

SHAH ALAM - The proposal to abolish the pension scheme for civil servants has sparked debate, with some suggesting it should begin with representatives and Cabinet ministers due to their higher salaries and allowances.

Political analyst Muhammad Afifi Abdul Razak has argued that national leaders should lead by example, especially in times of financial difficulty.

"While the government's financial concerns are understandable, starting the change with the top tier could demonstrate leadership through sacrifice.

"Their substantial salaries and allowances suggest their pensions would be proportionately significant, making them prime candidates for this initial shift," he told Sinar when contacted.

Afifi acknowledged the pension scheme's financial benefits and its perceived significance for Malays, who form a large portion of the civil service.

However, he stressed the need for a nuanced approach.

"While the impact on Malays and the government's image deserves consideration, the overall financial sustainability and fairness of the system must be a priority.

"Finding solutions that balance these concerns is crucial," he added.

On Wednesday, Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi said new civil servants would no longer receive pensions but would contribute to the Employees Provident Fund (EPF) and Social Security Organisation (Socso).

Zahid said this would alleviate the government’s financial burden by reducing pension payments, which he said would reach RM120 billion in 2040 without any change to the system.

This is set to be implemented by this year, with the public services department to announce the exact date.