The salary adjustment for civil servants is expected to significantly boost Malaysia’s economy and benefit small and medium enterprises (SMEs), said Housing and Local Government Minister Nga Kor Ming.

The rise in civil servant income, he said, would promote domestic consumption that would create more business opportunities for SMEs, especially those in the real estate and retail sectors, generate more employment opportunities, and drive economic growth.

“I believe the upcoming salary adjustment, which Prime Minister Anwar Ibrahim will announce, will create a multi-billion ringgit impact on consumption and generate a multiplier effect on the market,” Nga (above) said in a statement today.

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 percent, surpassing the government’s initial estimate.

In the first quarter, Malaysia’s economy grew by 4.2 percent year-on-year, driven by increased household spending, high trade volume and improvements in the labour market.

The number of employed individuals surpassed 17.1 million, setting a historic high, while the unemployment rate fell to 3.3 percent, 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.

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, the minister stressed.

Anwar is expected to announce the details of the civil servant salary adjustment mechanism tomorrow.

National Institute of Public Administration senior deputy director (competence development) Haniff Zainal Abidin said the announcement is expected to draw considerable attention, particularly among civil servants.

- Bernama

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