Malaysia: Malaysian Prime Minister Anwar Ibrahim has declared a significant increase in civil servants’ salaries, surpassing 13 percent, in response to escalating costs and the devaluation of the local currency.
Anwar declared that 10 billion ringgit ($2.10 billion) would be set aside to enable the “best increase in history” starting in December during a speech on Wednesday in honour of Labor Day.
The finance minister, Anwar, stated that the pay increase will guarantee civil officials a minimum income of 2,000 ringgit ($420) per month.
According to the state-run news agency Bernama, Anwar said, “The overall minimum income, which includes salary and fixed allowances, is 1,795RM per month.”
Additionally, Anwar urged businesses with “huge profits” to share in their success by paying their staff members more.
The announcement was made by the Malaysian leader, who previously announced plans to boost taxes and reduce subsidies to strengthen the nation’s finances, as household budgets are being put under pressure due to the ringgit’s decrease in value.
Thus far this year, the ringgit’s value relative to the US dollar has dropped by almost 4 percent.
At 4.7965 ringgit per dollar in February, the currency plummeted to a 26-year low—lower than it had been since the Asian financial crisis of 1998.
Although the decline in the value of the currency has made it easier for exporters to sell their goods at a lower cost abroad, it has also increased the price of necessities like food and gasoline.
Anwar called the decline in the value of the currency “concerning” but “under control.”
The fifth-largest economy in Southeast Asia expanded by just 3.7 percent last year, much below official estimates and a dramatic decline from its 22-year peak of 8.7 percent in 2022.
The country’s statistics department issued advance estimates for the GDP expansion in the first quarter of this year, which came in at 3.9 percent.
The central bank of Malaysia has stated that it anticipates 4-5 percent GDP growth in 2024.
WORLD ROUNDUP | Australian Space Agency identifies mysterious object as debris from Indian rocket
