PAS president Abdul Hadi Awang’s recent contention that abolishing pensions for civil servants deviates from true Islamic teachings while being an eye-opener, has caused a stir in the country, especially among concerned taxpayers!
In fact, after being conspicuously absent on the first day of the new parliamentary session, the Marang MP certainly made his presence felt last week after trying his best to “school” PM Anwar that his Madani government’s plans were very “un-Islamic.”
For context, the pension issue became a hot topic recently after Deputy Prime Minister Ahmad Zahid Hamidi announced the impending introduction of a non-pensionable salary scheme in the hiring of new civil servants. To back that up he had stressed that this was necessary as by the year 2040 the government will have to fork out an astronomical sum of around RM120bil just to cover pension payment expenses alone!
While Zahid’s explanation was as clear as daylight, Hadi's response may only have prompted many to ask if the seasoned political leader is even aware of the increasingly challenging economic conditions and the plummeting ringgit that the country is wrestling with now. And what about the huge national debt of RM1.5 trillion which is not going to be settled anytime soon?
In fact, according to a local news website the PAS president went on to admonish the Madani government that the proposal to abolish pension for civil service should not even have been suggested in the first place - yes! He further cautioned the government that all civil servants should be valued for their service and contributions to the nation.
Hadi had then proceeded to “educate” the MPs in the Dewan Rakyat that according to Islamic teachings, the initiative to give pensions (including for civil servants) was inspired by God’s promise of “perpetual rewards” for righteous deeds, even after death.
Interestingly, he further underlined that this can be seen from God’s promise that those who had contributed to the well-being of others, like having built a road or hospital, should deserve to be rewarded for the good deeds they have done.
While the PAS president’s preaching on the pension saga may have its own merits, it has certainly raised plenty of questions and talking points.
To start with, if what the veteran leader says is justified then shouldn't all the PAS-ruled states be paying pensions to their state government staff? But apparently, this is not the case. Why?
It may be true that the promise of a monthly pension payout may encourage allegiance to the employer. But is loyalty to one’s employer even an accepted value in this digital age?
Conversely, won't it also encourage deadwood and freeloaders to hang around until retirement day and add to the already bloated workforce that drains the government of its resources?
In fact, in an increasingly competitive world, will the pension factor really motivate people to improve their lives with new challenges so that they can move on to greater heights? Or will it make people more complacent?
Interestingly, Hadi had also reportedly said that civil servants should be rewarded for their good deeds in building roads and hospitals. Won't that also mean that rightfully, the government has to pay pensions to the wealthy contractors as well as the foreign labourers for all their hard work and “good deeds?”
One wonders too, if the proponents of pensions are aware that even staunch Islamic countries like Brunei had ended pension schemes for their government servants decades ago; and so have advanced states like Singapore. So, what exactly is taking us so long? By now, shouldn't we have learnt from them about managing a country’s finances smartly and prudently?
Furthermore, isn't it true that opposition parties such as PAS and Bersatu often harp on the inability of the unity government to manage the economy of the country? Yet, aren’t they the first to protest when concerts by overseas artists are approved - claiming the Madani government is driven by a secular agenda?
Worse still, by doing that, they also send out the wrong message to the international business community while depriving the country of precious potential revenue, part of which will be utilised to pay the civil servants, of course! Don't they see the connection there?
Hadi had also insinuated that it is compulsory that all the good deeds (labour) of the civil servants must be rewarded. But aren't they already being well-compensated with bonuses, allowances, housing loans and other perks?
Perhaps, he should compare them with the millions who are compelled to do gig jobs to survive. In that regard, wouldn't a government job these days, in spite of some inevitable downsides, seem like a real luxury with the added assurance of a monthly pension payout until death?
Meanwhile, even someone with the most rudimentary grasp of the country's economy will be able to tell that with more civil servants, the greater the pension sum that needs to be paid out. This of course will translate to the government having to impose new taxes or increase its existing taxes on the citizens (like what’s happening right now) so that it doesn't run out of funds!
Actually, some may even be tempted to ask - if PAS was ruling the country in 2040, how would it be paying its civil servants’ pensions totalling an estimated RM120bil?
In fact, though both have their merits, in the final analysis, isn't the EPF scheme smarter and more farsighted than the pension scheme? After all, the money accumulating in the members’ accounts will keep growing while at the same time, the government can utilise the funds to stimulate the country’s economy by investing in productive activities. A win-win situation.
Furthermore, it has been proven that state governments and government-linked companies are also mostly not on pensionable schemes but are under EPF schemes. So, obviously, it has been tried, tested and accepted.
Finally, there is also a chance that having a non-pensionable salary scheme for new civil servants may deter many from joining the government; but won't that also act as a filter to attract only the truly committed and savvy candidates to join the government payroll?
The bottom line though, is that government borrowings and expenditures will continue to shoot up drastically to the extent that it will no longer be sustainable - and may even bring the whole country crashing down - if it were to carry on paying pensions forever. Thus, it should have nothing to do with the “afterlife” but rather sound practical and sustainable economic management.
Fascinatingly, if the introduction of a non-pensionable salary scheme for new recruits in the civil service does come to pass, then it will certainly become one of PM Anwar’s most notable reforms.
In fact, Anwar could well end up being heralded as the country's economic saviour, eclipsing even his adversary Dr Mahathir’s legacy! But will Hadi and PAS turn to their favourite “weapon” and make sure Anwar and his multiracial unity government fail?
Main Information Source: Focus Malaysia
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