Should Malaysia reduce its civil service size by 10 percent every two years?

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Malaysia Should Reduce Its Civil Service Size By 10 Percent Every Two Years

Malaysia's civil service, comprising 1.6 million employees, represents a substantial financial strain on the nation's coffers, with annual expenditures reaching approximately RM76 billion for salaries and an additional RM18 billion for pensions. The current size of the civil service is reportedly the largest globally, contributing to a situation where salary increments, even by a single percentage point, can amount to millions of Ringgit annually. To address this financial burden and revive an "ailing government machinery," a reduction of at least 10 percent in the civil service size every two years is advocated.
Addressing Financial Strain and Inefficiency

The significant financial commitment to the civil service, including substantial salary and pension payouts, places a considerable burden on public funds, which are ultimately derived from taxpayers. This annual expenditure, amounting to RM76 billion in salaries and RM18 billion in pensions, highlights the scale of the financial challenge. Implementing a phased reduction in the civil service size is proposed as a necessary measure to alleviate this strain and ensure more responsible fiscal management, especially given the country's substantial national debt exceeding a trillion Ringgit.
Revitalising Government Machinery

Beyond the financial implications, the civil service is described as an "ailing government machinery" plagued by underperformers and potentially corrupt officers. Reports from the Auditor General's Office have previously highlighted significant wastages within government agencies, particularly during the previous administration. The author's observations of local council staff's efficiency over three decades suggest a persistent issue with productivity and performance, indicating a need for systemic reform to ensure effective public service delivery.
Implementing a 'Hire and Fire' Policy

A core recommendation for reform involves adopting a 'hire and fire' policy within the Malaysian civil service. This approach suggests that unproductive civil servants who fail to meet their Key Performance Index (KPI) should be subject to termination, mirroring practices in other nations. The extraordinary job security previously afforded to civil servants is considered outdated, with the argument that individuals working against the government's political will should not be retained, thereby enabling genuine reform and accountability.
International Precedents for Civil Service Reform

The proposal for a more flexible approach to civil servant employment is supported by examples from other countries. In Britain, senior civil servants are increasingly being held accountable to ministers and Parliament, as noted in an Institute for Public Policy Research (IPPR) report. Australia's Public Sector Management Act 1994 empowers department heads to select, remunerate, redeploy, or terminate employees, while the Australian Education Act 2013 provides the Director-General of Education with the authority to dismiss individuals in the teaching profession under specific circumstances. These international models suggest that reforms aimed at enhancing accountability and performance management within public sectors are feasible and have been implemented elsewhere.

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Should Malaysia reduce its civil service size by 10 percent every two years?

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