Proposed contract scheme is for new intake, says chief secretary

Chief Secretary to the Government, Ismail Abu Bakar.

KUALA LUMPUR: A proposed contract scheme to replace the permanent and pensionable establishment in the public services will only cover new appointments and will not affect those already in service, said Chief Secretary to the Government Ismail Abu Bakar.

He said the matter is still being studied and no decision has been made yet.

“Possibly, only next year can we decide whether to implement or improve the proposal.

“As we are all aware, the armed forces and the police are in the civil service that require continuity, whether they are involved or not,” he told reporters during a working visit to the Royal Malaysia Police Special Action Unit here today.

Last Wednesday, Public Service Department director-general Borhan Dolah was reported as saying that beginning next year, new appointments in the public service may no longer be made under the permanent and pension scheme as it would be replaced with an improved contract scheme to reduce the burden of pension payments, now totalling RM28 billion.

Ismail said a proposed increase in the salaries of the police was being studied and would depend on the country’s financial capabilities. “Apart from that, the structuring of the allowance for members of the country’s security forces will also be improved from time to time ,” he added.

New PSD directory-general to be named soon

Borhan retires tomorrow having reached the date of mandatory retirement.

Ismail said a number of candidates have already been identified to replace him. “The government is considering the selections and an announcement will be made soon.”

Borhan joined the civil service in 1984 as a senior community relations officer in the National Unity Department. He was appointed as PSD director-general on July 13 last year.