The government has to spend some RM120bil to cover pension payments by 2040 if new salary schemes in hiring public officers are not introduced, says Datuk Seri Dr Ahmad Zahid Hamidi.
Speaking to reporters on Wednesday (Jan 24), the Deputy Prime Minister said the new salary scheme is expected to be announced by the Public Service Department director-general within this year.
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Speaking to reporters on Wednesday (Jan 24), the Deputy Prime Minister said the new salary scheme is expected to be announced by the Public Service Department director-general within this year.
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NewsTranscript
00:00 I met him at the airport
00:02 (laughing)
00:04 Did you go to the toilet?
00:06 No, I didn't
00:08 Peace be upon you
00:10 What was discussed in the Cabinet earlier
00:12 was that
00:14 there was a confusion
00:16 regarding the statement
00:18 that the responsibility
00:20 for the new recruitment
00:22 is the contract responsibility
00:24 It doesn't mean that
00:26 the contract
00:28 is short-term
00:30 Before
00:32 the Cabinet passed
00:34 the new recruitment
00:36 in a permanent way
00:38 but without a break
00:40 they will
00:42 recruit
00:44 to KWSP
00:48 and the government
00:50 will provide a contribution
00:52 as usual
00:54 in the private sector
00:56 and
00:58 whoever is qualified
01:00 to be given
01:02 a contribution
01:04 will be qualified
01:06 As I mentioned earlier
01:08 in 2040
01:10 the number of pensions
01:12 that the government will have to bear
01:14 if there is no new system
01:16 is 120 billion
01:18 and of course
01:20 this will be a long-term burden
01:22 for the government
01:24 especially
01:26 the KWAP, Kumpulan Wang, Amanah Pensin
01:28 maybe
01:30 when the investment portfolio is large
01:32 maybe they are not able
01:34 to make investments
01:36 to provide dividends
01:38 or ROI
01:40 which is the normal return
01:42 so it will be a long-term burden
01:44 for the government
01:46 and the public officials
01:48 who are affected
01:50 will be taken care of
01:52 and the current system
01:54 will be continued
01:56 permanently
01:58 I want to clarify
02:00 that only the new system
02:02 will be announced
02:04 by the head of the public officials
02:06 but this year
02:08 Based on the new public office training
02:12 will the recruitment
02:14 be the same as the private office
02:16 or different?
02:18 It will be the same
02:20 it means
02:22 the employees
02:24 will be recruited
02:26 by the private office
02:28 and the government will also
02:30 contribute
02:32 I don't know the quantum
02:34 maybe it will be the same as the private office
02:36 or maybe
02:38 it will be added
02:40 and this will be based on the
02:42 recommendations of the head of the public officials
02:44 Thank you
02:46 [Silence]
02:48 [Silence]
02:50 [BLANK_AUDIO]