SHAH ALAM - The increase in civil servant salaries is expected to positively impact the local economy by enhancing purchasing power, boosting domestic spending, and improving the overall standard of living in the country.
Universiti Teknologi Mara (UiTM) Malaysian Academy of SME & Entrepreneurship Development (MASMED) Coordinator of the Student Entrepreneurship Centre, Dr Mohamad Idham Md Razak said that this rise in spending could help expand various sectors, thereby contributing to national economic growth.
"When salaries increase, civil servants are likely to spend more in sectors such as retail, services, and housing, which will stimulate local economic growth," he told Sinar.
Idham added that this increase in spending could also support the growth of small and medium-sized enterprises (SMEs), create more job opportunities, and enhance local tax revenue.
Prime Minister Datuk Seri Anwar Ibrahim is expected to make an important announcement regarding the Public Service Remuneration System (SSPA) at the 19th Premier Public Service Address (MAPPA) event, scheduled to be held tomorrow at the Putrajaya International Convention Centre (PICC).
National Institute of Public Administration (Intan) Senior Deputy Director (Competency Development) Datuk Dr Haniff Zainal Abidin claimed that this announcement is likely to attract significant attention, particularly from civil servants.
Idham further pointed out that the salary increase for civil servants will benefit not only this group but also the business sector and private industry.
He said that this move may also pressure the private sector to reassess their salary structures and benefits to remain competitive in retaining top talent within their organisations.
"If the SSPA introduces a salary increase or benefits improvement for civil servants, it has the potential to boost the overall purchasing power of society," he said.