BY: HASSAN KARIM
I have taken note of the issue of over 49,000 civil servants facing bankruptcy for failing to manage their debts.
Quoting Congress of Union of Employees in the Public and Civil Services Malaysia (CUEPACS) President, Datuk Azih Muda, civil servants are found to be taking personal loans from financial institutions, exceeding their salary payment capabilities.
For me, this situation happens as they lack the financial means to cover basic necessities and the increasing cost of living with the additional burden of Goods and Service Tax (GST).
- Therefore, I ask the government to find a new alternative to help civil servants by organising some special loans, where payment can be made through deductions in their pensions or bonuses.
This will make it easier for them to make any loan without having to cut their monthly salary.
- In the worsening current economic trend, people are struggling with the increasing cost of living, forcing them to do extra work to make ends meet. Many civil servants are already working on two jobs at one time. Some sell food, work in fast-food restaurants, in fact some also become Uber and Grab Car drivers to get additional income.
3. Taking into account the number of civil servants facing bankruptcy in excess of 49,000, I urge the government to review their salaries to be at par with private sector employees.
As recommended by Cuepacs before, the government should emulate the system implemented by the National Co-operative Movement of Malaysia (ANGKASA) which is the Credit Reporting System (Spekar), with a record of civil servants.
4. In addition, the government should also provide them with financial management programmes and monitor their luxury spending in excess of monthly incomes
In addition, the government should provide soft loans for them to overcome crisis in the short and long term, with strict policies for civil servants to take up loans for purchases like houses and cars.
This is because, the Khazanah Research Institute’s (KRI) report warned that household debt of almost 90 percent the country’s Gross Domestic Product (GDP) is an alarming rate.
The largest component of household debt is housing loan which is more than 40 percent. That is the reason Bank Negara Malaysia (BNM) has imposed several rules to control this debt.
* Karim Hassan is the Chairman of Johor KEADILAN
