IPOH, Jan 28 — The government has dismissed allegations that the proposal to abolish the pension scheme for new intakes of civil servants would victimise the Malays, who form the majority in government service.

Prime Minister Datuk Seri Anwar Ibrahim said the proposal had been under study for a long time as there is a need for a new service scheme to avoid the risk of the country going bankrupt and future generations facing problems.

"In fact, it has been studied for many years, if I’m not mistaken since the 90s, but there is no political will to implement it.

"The opposition kept claiming that abolishing pension will victimise the Malays, that this is a DAP proposal but has not presented facts and instead played on religious sentiment,” he said when closing the Perak Unity Government convention here today.

Also present were Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi, who is also Barisan Nasional (BN) chairman, Perak Menteri Besar and state BN chairman Datuk Seri Saarani Mohamad, Perak Pakatan Harapan (PH) chairman Datuk Seri Mujahid Yusof and DAP vice-chairman Nga Kor Ming.

Anwar, who is also PH chairman, said some developed countries had already abolished the pension system for civil servants.

He said politicians should accept the fact that they would also be affected if the non-pensionable scheme was implemented for new civil servants.

This would include those who would be fielded as candidates in future elections, he said.

"It is up to them if they do not want to contest in future general elections because there will be no more pension,” he said.

The government has said that the proposal to place new hires on a non-pensionable scheme would not affect the pension status of existing civil servants.

Anwar also reaffirmed the government’s commitment to raising the remuneration rate for civil servants according to its capability.

"For 12 years, civil servants have not been given any adjustment, no commitment to improve their salary rate.

"We have decided that despite facing financial constraints, this matter (increasing civil servants’ salaries) cannot be delayed,” he said. — Bernama