00:00 It's good, but just don't make us do it.
00:06 That's how employers feel about a proposal to raise the minimum salary for civil servants.
00:11 Prime Minister Anwar Ibrahim recently said a review was on the cards just after QPAC's
00:16 asked for a 35% pay rise and for the minimum salary of civil servants to be raised from
00:22 RM 1,200 to RM 1,800.
00:26 The Federation of Malaysian Manufacturers President Soe Thien Lai said the cost of doing business
00:31 would rise if the private sector is forced to follow suit.
00:35 He pointed out that it would put a financial strain on small businesses such as SMEs.
00:41 Economists Ramon Navaratnam and Afzal Nizam Rashid agreed that with extra money in the
00:46 pocket, civil servants would spend more, thus stimulating the economy.
00:51 However, they also pointed out that it would put greater strain on the government's finances.
00:56 Afzal Nizam noted that salaries and pensions already account for a significant proportion
01:01 of government spending.
01:03 However, he said the impact could be moderated by increased productivity and a reduction
01:08 in corruption and wastage.
01:11 Danish Rajareza, FMT News.
01:13 [MUSIC PLAYING]
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