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Monday May 10, 2010

Awang Adek: Pay increase will ensure NEM success

KOTA BARU: A pay increase for over one million civil servants is one of the key ingredients in ensuring the success of the New Economic Model (NEM), said Deputy Finance Minister Senator Datuk Dr Awang Adek Hussein.

He said this was to ensure that the NEM’s objective of transforming the country from a middle-income economy to that of a high-income would improve the public sector’s productivity, thus ensuring successful development.

“Singapore shifted to a high-income economy several years ago by setting high pay for civil servants, which has succeeded in improving its economic performance.

“So civil servants in this country cannot be ignored,” he said when closing the Kelantan branch of the Peninsular Malaysia Technical Services Union annual general meeting here yesterday.

Awang Adek said the Federal Government would take steps to ensure that workers enjoyed better wages in line with NEM’s objective.

He said the Government also spent around RM4bil annually in Kelantan just on management costs to help the PAS-led state government govern the state effectively.

“This shows that the Federal Government does not discriminate against the state,” he said, adding that the sum was much higher than that spent on other states.

He also said statistics indicated that Kelantan was the country’s least industrialised state in Peninsular Malaysia, smaller even than Perlis.

The Customs Department only collected duties and taxes worth RM38mil from the state last year as compared to RM1.3bil from Malacca, added Awang Adek.

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