Deputy prime minister Ahmad Zahid Hamidi said those awarded contract posts in the civil service would later be given permanent posts.

“The contracts are for a short period before the Cabinet approves the new policy,” he said at a press conference.

Zahid added that new civil servants would no longer get pensions but would contribute to the Employees Provident Fund (EPF) and Social Security Organisation (Socso).

The government will also contribute to the EPF for them, similar to how private sector employers do for their workers.

He said the new policy will be implemented by this year, with the public services department to announce the exact date.

Zahid said this measure would alleviate the government’s financial burden, by reducing pension payments.

“In 2040, the government would have to pay RM120 billion in pensions if a new system isn’t introduced,” he said. “This would surely be a long-term burden for the government.”

Meanwhile, the deputy prime minister said the royal commission of inquiry (RCI) into matters related to the sovereignty of Batu Puteh, Middle Rocks, and South Ledge will be formed after the new King is installed.