As Singapore celebrates Labour Day on 1 May with our bittersweet May Day Rally, our neighbours in Malaysia also had many things to celebrate about.

In his speech at the Putrajaya International Convention Centre yesterday morning, Prime Minister Anwar Ibrahim announced that civil servants can enjoy a salary hike of about 13 per cent from 1 Dec.

Here’s everything you need to know about the hike.

Protecting Workers Amid Nation’s Debt

Mr Anwar said that the salary increase will cost the government about RM10 billion every year. This has raised some eyebrows about the countries’ existing deficit.

According to Malaysia’s New Straits Times, Malaysia has an outstanding debt of US$542.5 billion.

However, Mr Anwar emphasised the importance of taking care of workers.

“Although our debt may be big with the existing deficit, we must seriously consider the welfare of our workers.”

As such, Mr Anwar promised that the 1.7 million civil servants will enjoy at least RM2,000 of overall income. This includes the workers’ salary and fixed allowances.

The 13% hike is the highest since 12 years ago which also had a 13% revision. Now, the minimum overall income of civil servants is RM1,765.

Mr Anwar said that this minimum requirement will be put in place for the civil servants’ December Salary.

Workers Need to Have Satisfactory Record for the Salary Increment

Of course, there’s always a catch.

To ensure fairness, Mr Anwar warned that civil servants who are not performing well or are not up to standards will not enjoy the increased remuneration. They will also not be promoted.

Reader: How will they know? What is “up to standard”?

He stated that workers need to “be monitored to see if they are lazy or coming in late for work often”.

Ouch. 

“If their record is unsatisfactory, they will not be rewarded,” Free Malaysia Today quoted.

Mr Anwar reminded everyone that the profits that the company enjoys come from the productivity of its workers. As such, this move was deemed a worthy investment to boost the performance of the companies.

He called for the private sector to follow in the footsteps of the government in that the welfare of its workers is guaranteed.

“Give some of it (to the workers). If the company makes hundreds of millions in profit, give a few hundred to the workers,” he said.

He also mentioned that the Sabah and Sarawak governments have agreed to make the necessary changes to their labour laws so that it is standardised with the rest of the country.

This will be made concrete at the next Parliament sitting, and more details will be shared in the Budget 2025 debate.