Pension scheme abolishment proposal: People will choose high-paying jobs instead of public sector

SHAH ALAM - People are expected to no longer choose a career in the public sector as they prefer pursuing careers that offer high salaries if the pension scheme for civil servants is abolished.

Universiti Teknologi Mara (UiTM) Arau, Perlis Faculty of Business and Management senior lecturer (Human Resource) Dr Muhammad Aiman Arifin said the mentality of the people, including graduates who previously pursued jobs in the government sector to enjoy pension benefits, will change.

He said this development would open a new chapter in the job market competition in the country.

"In the past, people aspired to work in the government sector because of the pension scheme, but now they don't mind whether it's the private or public sector because both offer contributions to the Employees Provident Fund (EPF).

"So, the jobs that will interest them now will undoubtedly take into account the perks offered by employers or organisations, especially in terms of high salaries and allowances," he told Sinar.

Aimam said job competition would not be limited to a specific sector but would encompass all sectors.

"For example, in higher education, I used to be a lecturer at a private higher education institution and switched to a public institution because it had its advantages. But now, what attracts individuals is what an organisation offers to its employees," he added.

He said the government's decision to abolish the pension scheme for newly permanent civil servants was seen as taking into account the current financial situation of the country and the expectation was that the future circumstances may pose greater challenges.

"We understand that this situation has also led the government to focus on hiring civil servants on a contract basis, moving towards implementing a new method of appointing permanent civil servants," Aiman added.