KUALA LUMPUR (Jan 24): Government spokesman Fahmi Fadzil on Wednesday clarified that the contract appointment system for new recruits in the civil service is temporary, pending the completion of a study on the remuneration system for public officers.
Speaking to the media here on Wednesday, Fahmi, who is also the communications minister, said the Public Service Department (PSD) would issue a statement regarding the matter soon.
"This is important to avoid concern and misunderstanding about what the system means,” Fahmi said.
Prime Minister cum Finance Minister Datuk Seri Anwar Ibrahim, when tabling Budget 2024 in Parliament on Oct 13 last year, announced that the full implementation of the Public Service Remuneration System (SSPA) would begin in 2025.
The study on SSPA will be carried out comprehensively, Anwar had said, stressing the focus would be on increasing the productivity and efficiency of public services.
Public Service Director General Wan Ahmad Dahlan Abdul Aziz, in a circular dated Jan 15, 2024, announced that new appointments of public servants would be made on a contract basis from Feb 1, as the government aims to control its pension expenditures.
According to the circular, the government, through a Cabinet meeting on July 12, 2023, decided to introduce a new method for the permanent appointment of civil servants to strengthen the public service retirement system in Malaysia, simultaneously reducing the country’s fiscal commitment in the longer term.
"This new initiative for the new appointment method is undergoing amendments to relevant laws and enhancements to the preparedness of the related system.
"The Cabinet has approved that, during this transitional period preceding the implementation of the new method, the hiring of civil servants for permanent positions will be conducted through a contract of service (COS) system," he said.
Wan Ahmad added that the contractual appointment system would adhere to existing regulations, service circulars, and current procedures, specifically Human Resources Service Circular's (MyPPSM), which is separated under the UP.1.1.1 Contract Appointment Procedures and Policies (Contract of Service).