DPM: Proposal to stop pension scheme still under study

DPM: Proposal to stop pension scheme still under study

KUALA LUMPUR: The proposal to terminate the Public Service Pensions Scheme for new appointments from next year is still being studied, said Deputy Prime Minister Datuk Seri Dr Wan Azizah Wan Ismail.

“I understand that it will be submitted to the Cabinet for approval…we will discuss it further.

“However, it is not ready to be sent to the Cabinet…we are working it out,” she told reporters after launching the Women in Business (WinBiz) programme introduced by Bank Islam for women entrepreneurs under the small and medium-scale industries segment today.

Yesterday, Public Service Department director general Datuk Seri Borhan Dolah said starting next year, new appointments in the public service may no longer be made under the permanent and pension schemes, but will be made under an improved contractual scheme.

He said the move was decided at a special Public Service Reform Committee meeting in October 2018 which wanted the civil service to be reduced in size in phases, based on need, as well as reduce the burden of pension which is now reaching RM28 billion.

Earlier, in her speech, Wan Azizah who is also Women, Family and Community Development Minister, urged financial institutions in Malaysia to emulate Bank Islam by introducing products or services which encourage the involvement of women in entrepreneurial areas.

She also urged the private sector and non-governmental organisations to work to increase women’s involvement in business, especially small and medium-scale industries (PKS).

According to the Economic Census 2016 conducted by the Malaysian Statistics Department, there are almost one million businesses in small-and-medium-scale segment, with about 20.6% owned or managed by women.

“This clearly shows that the PKS is a backbone of a country’s wellbeing, and I believe that women entrepreneurs can spearhead economic growth for the long run,” she said.