KUALA LUMPUR: In the latest episode of Beyond the Headlines, the team delve into two crucial topics dominating Malaysian news — the proposed overhaul of civil servants' pension schemes and the depreciating value of the Malaysian ringgit against the Singapore dollar.
Esteemed guests Universiti Malaya Social Wellbeing Research Centre (SWRC) director Prof Datuk Dr Norma Mansor and Congress of Unions of Employees in the Public and Civil Services (Cuepacs) secretary-general Abdul Rahman Mohd Nordin joined the panel to dissect these issues further.
The discussion opens with the government's proposal to revise or potentially eliminate traditional pension schemes for civil servants.
The burden of the civil service on Malaysia's budget is substantial, costing RM32.4 billion in 2024, and is projected to rise to RM46 billion by 2030.
While transitioning to contribution-based retirement schemes like EPF and Perkeso promises long-term financial sustainability, concerns linger regarding the attractiveness of civil service positions and retention of potential recruits.
Key questions posed include the potential cost savings for the government, the benefits of transitioning to contribution-based schemes, and whether we are ready to align civil service benefits with private sector practices.
Rahman sheds light on the organisation's stance, addressing concerns about fiscal challenges, the impact on individuals relying solely on public sector pensions, and the perceived advantages of traditional pension schemes.
Meanwhile, the recent devaluation of the ringgit against the Singapore dollar fuelled the discussion surrounding the implications for Johor's economy.
Experts suggest that while this presents challenges, it also creates opportunities for increased investment inflows, particularly in the real estate sector.
Norma, who is also the Malaysian Economic Association (MEA) president shared the importance of reducing volatility in the exchange rate.
More in the latest episode of Beyond the Headlines…
*This episode was recorded on Feb 8