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Almost 40 per cent of civil servants are in debt PDF Print
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Sunday, 28 June 2009 11:03

(Bernama) Heads of ministries and departments should be humane in dealing with civil servants who are in debt, Cuepacs secretary-general Ahmad Shah Mohd Zin said today.

He said this group of workers needed "special attention as they may be vulnerable to corruption and moonlighting."

Almost 450,000 of the civil servants were in debt and their take home salary was less than 40 per cent of their monthly pay, he said, adding that the bulk of their salaries was deducted at source as payment for various loans -- housing, cars, renovations, education and hospitalization.

Cuepacs’s stand was that these officers needed to be "rehabilitated" before any disciplinary action was taken against them, he told Bernama.
"What is happening now is that the heads of department usually find the easy way out by taking disciplinary action, like stopping of increment, denying promotions and suspension from duty, thus aggravating the situation."

Under the General Orders, disciplinary action can be taken against civil servants if their take home salary is less than 40 per cent of the gross pay.


Ahmad Shah said there were hundreds of civil servants who were moonlighting as taxi drivers, petty traders, direct sales agents and watchmen to make ends meet.

Although the government was aware of the situation and had taken some positive steps like giving them official permission to work part-time, it was not enough, he said.

"The high cost of living, especially in the urban areas, is eating into their income, thus causing them to be constantly in debt," he added.

Federation of Malaysian Consumer Associations (Fomca) secretary-general Muhammad Shaani Abdullah agreed that the high cost of living was one of the contributory factors for the debts of civil servants.

"It is a myth that civil servants are spendthrifts and don't know how to manage money.

"The truth is that the civil servant's salary has not kept in tandem with the increase in the cost of living," he said."

For example, he said, about 30 years ago one could easily have a good breakfast for RM1.20, but today the same breakfast cost five times more.
However, at the same time, the civil servant's salary had not increased by the same proportion.

Muhammad said that if the government was unable to increase salaries, it could assist these civil servants in many other ways to cope with the rising cost of living.

Some of the areas where it could help were to improve the public transportation system to make it affordable and reliable, provide better medical facilities and more scholarships, open special cooperatives, offer soft loans for housing and other needs and give discounts for utilities.

Comments (14)Add Comment
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written by Liberian, June 28, 2009 11:17:13
Most of them are in the lower rank who borrows to meet ends. But those that holds the keys for approvals and decision makings are loaded with corrupt monies. There is a saying most DGs retire with at least a million ringgits other than their usual retirement benefits.
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written by Spear Bing, June 28, 2009 11:20:06
As long as the public transport system remains dismal and hopelesssly archaic, owning a car will remain a necessity. Hence the pinching cost added to the take home pay. And with rising costs of living and inflation, Malaysian working population will continue to make ends meet.

Rich UMNO politicians, poor Malaysians.
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written by lynn, June 28, 2009 11:39:53
Not just civil servants, but the general population faces problem - stagflation.

Stagnant wages and inflated costs of living. Since last June petrol price shot up 78 sen to 2.70 per litre, prices of essentials have risen sharply & they are not coming down anytime soon.

Does anyone know abt petrol price hitting RM2.00 per litre come September? If you cannot survive and want to apportion blame, blame the bn govt. Just don't blame the non-Bumis. We are all badly hit too. For decades we all pay VERY high purchase price for cars. Why? A big chunk of that goes to the govt's coffers. Where are all the money?
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written by densemy, June 28, 2009 11:51:21
There has been a long term conscious policy on the part of BN governments to keep Malaysians suppressed by poor wages. A policy widely applauded by greed driven commercial interests.

Malaysians have failed to reap the benefits of Malaysia's era of wealth and growth. But now that era is reaching its end and what is left is a deprived nation with a filthy rich upper class

The flow-on effect is that its very rare for Malaysia to produce anything of quality. Cheap is the catch cry of this nation and everything it produces from human capital resources to the most basic commodities are cheap to buy and cheap quality

Malaysians live off the cast-offs from the rest of the world and many companies produce crap specifically for the Malaysian market. The end result is that Malaysians actually pay more for the crap they buy than if they were buying quality
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written by raven1958, June 28, 2009 13:17:41
Corporitisation has killed the country......our institutions are destroyed ....and we are ruled by a party that is in power only because of the police.....Malaysians have little choice left...either kick this government out and in the process get killed, borrow and get killed by the ah long....or do nothing and get killed by a cardiac arrest...

Like Michael Jackson, the country is bankrupt.....everyone will have to just stress up and die....The furure looks horribly bleak...
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written by Ho Lee Man, June 28, 2009 15:24:56
We have a outdated ,oversize and under performing Civil Service in Malaysia.
Outdated,is when you see officers has low education level and training to serve the public.Sometimes ,you wonder whether are they literate to be employed.
Oversize,is when there is 1 civil servant to 27 Malaysians.In developed countries the ratio is 1 to 100 or more.
Under performing,is when you see 1 officer working and many chatting away not serving the waiting public.In worse scenarios, when they are needed ,commom excuses are they are on leaving or attending some khusus.
In a outdated ,oversize and under performing situation ,salaries will remain low ,service quality will remain low and civil servant debts will remain high.
Hence ,moonlighting ,corruption and lackadiasical attitude are there for all to see.
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written by Commonsenses, June 28, 2009 16:14:22
Not surprising, most of them are malays. Had NEP been a success why do we have this problem? UMNO leaders took pride on the success of nation building for the last 50 years, why then the statistics don't reflect it? Yet a huge chunk of the government expenditure goes to pay civil servants salaries. A failed nation in the making.
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written by Malay Ultraman, June 28, 2009 16:37:47
The statitics only apply to low ranking servants. Those on the tops will definitely earns 10 times what the low rank earn. And it depends on the deparments..

Clerks working at Land Department might earn much more..
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written by Jefus, June 28, 2009 17:32:15
40% of Civil servants are in debt is not a complete statement...... many take small loans /petty loans and leave it to default, now, that is a better statement.
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written by Ron, June 28, 2009 21:27:00
What about the civil servants who are very rich?They work less but make more money each month than their counterparts in the private sector.They behave shamelessly when performing their duties,sell their souls to contractors and retire very rich.
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written by Ramesh, June 28, 2009 22:27:41
Is this guy trying to justify corruption? We all pay for the loans we take and at the end of the day, left with maybe 10 to 20% of our salaries for other activities. It’s not only the civil servants who go thru this, almost all malaysian go thru this. This is capitalism. If this guy wants government to "intervene and assist", than might as well we go for communism. Or why not just say plain and simple that the government give them money so that they will vote for BN!!!
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written by Oscar Winner, June 29, 2009 01:55:44
The govt wants to garner more votes and that's the reason for the "bloated" civil service.

May be 40% comprise civil servants who:

-receive pay monthly but are definitely weakly paid,
-are pious and will not be corrupted, and hardworking, too
-are new and unfamiliar with the corrupt practice yet
-have been told by their bosses to toe the line if they want to "cari makan"
-have been blacklisted and can't "cari makan" anymore

The rest 60% are just the opposite
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written by asguard, June 29, 2009 10:44:27
Every month it goes like this... pay here and there.... till nothing more is left... so resort to borrow again... no choice, no way out.... so most of the malaysian are within this cycle stage.... !
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written by elmo world, June 29, 2009 15:05:09
thansk to the rich politicians ..................
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