Scrap pensions of MPs, assemblymen but don’t touch civil servants


PETALING JAYA: Any government policy requires deep research before implementation, especially its impact on the people, says Datuk Seri Dr Wee Jeck Seng.

The Tanjung Piai MP also said there should not be any abrupt announcements that cause unnecessary confusion and anxiety.

He was responding to an announcement by Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi that the government would phase out the traditional pension scheme and opt for EPF contributions for new hires instead.

"I am willing to forgo my pension as an MP, but I will not be able to stomach seeing civil servants, especially those in the lower ranks, being forced into the same situation," he said in a statement Friday (Jan 26).

Wee added that he understood that the nation’s financial constraints pose difficulties for the government of the day but said this could not be conveniently used as an excuse to penalise the rakyat.

Wee's statement in full can be read below:

I AM willing and prepared to forgo my pension as a Member of Parliament. However, I will not be able to stomach seeing civil servants especially personnel in the lower ranks being forced into the same situation.

Any government policy requires deep research before implementation, in particular, its impact on the common layperson and not abrupt announcements which cause unnecessary confusion and anxieties.

Moreover, at the end of 2022, 51.5% of EPF contributors under the age of 55 — nearly 6.7 million people — had less than RM10,000 in their accounts.

On 24 January 2024, Deputy Prime Minister Datuk Seri Dr Zahid Hamidi said the government will phase out the traditional pension scheme and new public sector hirees will contribute to EPF instead.

It should be noted that most of these civil servants serve our nation and citizens by executing their responsibilities in their respective government ministries, departments and agencies.

Unfailingly, they also serve over a long period of time, usually stretching decades.

It comes as a stunner that, aren’t civil servants already given the option to either select the pension scheme or contribute towards the Employees Provident Fund (EPF)?

I recognise and comprehend that our nation’s financial constraints pose difficulties against the government today. However, this cannot be conveniently deployed as an excuse to penalise the rakyat, including civil servants, via policies, which in my opinion, can be avoided.

Furthermore, the slew of new taxes commencing this year also affect civil servants.

Listed among the new taxes are:

- The sales and service tax (SST) being raised from 6% to 8%;

- Electricity tariff will go up by 5% for M40 households;

- Digital Services Tax also increases from 6% to 8%;

- Traditional and complementary medicine (TC&M) services are slapped with an 8% SST.

Meanwhile, the expected withdrawal of subsidies to RON95 petrol and diesel in the first half of 2024 also fuels the higher cost of living.

MCA has repeatedly recommended to the government to reinstate the GST to help generate revenue for the country, which would then be returned to the rakyat.

A name change has also been advocated as an alternative should the current government eschew acknowledging the success of the (previous) BN government or being seen as U-turning.

What matters is that the tax system must be transparent and fair like the GST.

These pressing scenarios highlighted above are the real causes as to what is happening to our country and leaving adverse impacts on our citizens.

DATUK SERI DR WEE JECK SENG

MCA vice-president and Tanjung Piai MP

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GST , Wee Jeck Seng , Pension , EPF

   

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