Govt will monitor inflation caused by civil servants’ wage hike

Prime Minister Anwar Ibrahim during the ‘Soal Jawab Perdana Menteri’ programme broadcasted by all local television stations tonight. (Bernama pic)

PETALING JAYA: Prime Minister Anwar Ibrahim is confident that the government will be able to control any possible inflationary pressures stemming from the newly-announced increase in civil servants’ salaries.

Anwar said the phased implementation of the wage hike will help the government to closely monitor its effect on inflation.

“That is why the increase (of wages) is done in phases from December, and it will be followed through to the following year (2025),” he said during the “Soal Jawab Perdana Menteri” programme broadcasted by all local television stations.

“So, if it goes up (inflation), it will be under control because as we know, inflation in our country is the lowest in Asia.”

“We expect a slight increase… (That’s) acceptable. But if it’s relatively high, it will burden the people.”

Malaysia’s inflation rate stood at 1.8% in March. Inflation for the first quarter (Q1) of 2024 was recorded at 1.7% compared to 1.6% in Q4 2023.

Earlier today, Anwar announced that the government would increase the remuneration of civil servants by more than 13% this year – which he said would be the highest ever given to civil servants.

He said the total income, including allowances, of civil servants on the lowest salary scale would, for instance, increase to a minimum of RM2,000 per month from the current RM1,795.

Anwar, who is also the finance minister, said the government had allocated more than RM10 billion for the salary adjustment, which would be applicable to all civil servants.