Windfall Indeed?

Pay rise for civil servants
Civil servants pledge to be responsible and disciplined

Wow! Now that is a huge amount: RM 8 billion a year - the amount needed to fund the salary hike granted by the to 1.2 million civil servants starting from this July. Granted that this has long been in coming, one cannot shrug off that nagging feeling on the government's affordability, and whether such a hike will contribute to a feeling of increasing inflation. It was hoped such a pay rise would lead to increased efficiency and productivity among civil servants as well as reduced levels of corruption but I will not hold my breath. As long as there is no 'get out if you're not functioning' mentality, coupled with an impartial assessment of civil servants' performances, we will continue to experience the current levels of service, albeit with a slight improvement (I hope).

Nik Aziz: Pay rise timed for elections
The public sector deserves raise and Government can afford it now, says PM

Gracious as the move was, one cannot hide from the fact that such a move was ultimately politically motivated, what with the General Elections around the corner. Why wasn't the pay hike approved last year - with increases in petrol, electricity and water tariffs and oil prices at its height? No one can deny such a move now is definitely politically motivated. But of course not something that came out of the blue. The Government was slowly preparing for this - the recent increase in working hours in all Government Departments was an example.

While there is no increase in basic utility and petrol prices this year, one cannot say the same after the General Elections. While we may be able to afford it this year, how is the Government going to fund the increased salaries in the coming years? The world economy is leaving us behind while we bicker about equity percentages in our businesses, delaying approvals for businesses which wish to set up shop in this country, and which of our laboured industries we intend to save. The Malaysian stock market is a laboured entity, pushed and prodded at the whims of foreign investors. There is only one way: the very people that so-called benefits from the salary increase - the people of this country. I expect widespread increases in utility, petrol and toll prices after the elections, maybe not immediately but eventually. And God forbid, a rise in the income tax.

So a windfall indeed? Maybe, but we are going to have to pay...literally, eventually.