KUALA LUMPUR: The upcoming salary adjustment for civil servants is expected to significantly boost Malaysia’s economic growth and benefit Small and Medium Enterprises (SMEs), particularly in the property and retail sectors, said Housing and Local Government Minister Nga Kor Ming.
“The rise in civil servants’ income levels is expected to boost domestic consumption. This will create more business opportunities for SMEs, especially for those in the real estate and retail sectors, generate more employment opportunities, and drive economic growth.
“I believe the upcoming salary adjustment, which will be announced by Prime Minister Datuk Seri Anwar Ibrahim, will create a multi-billion ringgit impact on consumption and generate a multiplier effect for the market,” he said in a statement on Thursday (Aug 15).
Several international institutions, including JP Morgan and Goldman Sachs, have upgraded their ratings for the Malaysian capital market. Economic research institutions also project the country’s economic growth in the second quarter of this year to exceed six per cent, surpassing the government’s initial estimate.
In the first quarter of this year, Malaysia’s economy grew by 4.2 per cent year-on-year, driven by increased household spending, high trade volume and improvements in the labour market.
The number of employed individuals has surpassed 17.1 million, setting a historic high, while the unemployment rate has fallen to 3.3 per cent, indicating full employment.
Nga emphasised the robust recovery and steady growth of Malaysia’s economy under the leadership of Anwar.
“Full employment not only means more people have stable incomes and job opportunities, but it also signifies that the country’s economic vitality and productivity have been significantly enhanced,” he said.
He stressed that the Madani government will continue to monitor economic development trends and is committed to fostering comprehensive and sustainable economic growth through various policy measures to ensure that all sectors and industries benefit from economic prosperity.
Anwar is set to make an important announcement on the Public Service Remuneration System (SSPA) at the 19th Majlis Amanat Perdana Perkhidmatan Awam (Mappa) at the Putrajaya International Convention Centre tomorrow.
National Institute of Public Administration (Intan) senior deputy director (Competence Development) Datuk Dr Haniff Zainal Abidin said the announcement is expected to draw considerable attention, particularly among civil servants. – Bernama
