Govt pay rise smart move to keep employees happy, boost economy, says MP

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Kepong MP Lim Lip Eng said boosting household spending will keep up the momentum from the strong GDP growth.
P[ETALING JAYA: A DAP MP has praised the government for the 7% to 15% pay raise for civil servants, saying it is a strategic mix of boosting the economy and lifting spirits across the board
Kepong MP Lim Lip Eng said the new Public Service Remuneration System (SSPA), unveiled by Prime Minister Anwar Ibrahim yesterday, is not just a pat on the back for government employees, “it is a smart move that is set to give the whole economy a nice boost”.
“With more money in their pockets, civil servants are going to be spending more,” Lim said in a statement today.
“This means more cash flowing through local businesses and services, keeping the economy thriving. It’s exactly the kind of push we need to keep up the momentum from the strong gross domestic product growth”.
According to Bank Negara Malaysia, the economy grew 5.9% in the second quarter of 2024, exceeding an earlier prediction of 5.8%, bolstered by, among others, resilient household spending.
Lim said happier civil servants would mean more efficient government offices, smoother services, and better implementation of policies, all of which are important for “keeping things stable and moving forward”.
He said the salary revision, to take effect in December, is also a big step towards shrinking the income gap and bulking up the middle class, which is crucial for a well-rounded economy.
“Everyone benefits when growth is shared widely, and that’s exactly what this raise aims to do,” he said.
“In short, the Madani government is doing the right thing, linking a well-timed raise for civil servants with ongoing economic growth. It’s a strategic mix of boosting the economy and lifting spirits across the board, proving that when public sector workers thrive, the whole country does too.
“This move shows a commitment to making sure that prosperity reaches every corner of the community.”

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