THE Sarawak government is studying the possibility of increasing the salaries of civil servants as a way to fight corruption, Premier Abang Johari Openg said.

He said the move was much like what had been practised in Singapore.

“Civil servants are not being paid enough to cope with increasing costs of living,” he said when addressing the Sarawak Economic Development Corporation integrity day today.

He said the financial strain the civil servants faced gives rise to the tendency to ask for under-the-table money and abuse of power.

He however said the pay hike decision needs careful study because “the state government cannot simply create posts or create its own system of salaries and pension benefits without being subject to the federal civil service”.

Abang Johari said it’s because all pensionable posts are subject to the approval of the Public Services Department (PSD) as all pensions are paid by the federal government.

That is unlikely to be much of a hurdle though as he said there is a way to bypass the PSD.

He also hinted the sovereign wealth fund – the bill for its incorporation he is tabling at the Budget session of the state assembly beginning November 21 – could provide the funds for the increase.

The premier said more and more evidence has emerged concerning the adverse consequences of bad governance on economic performance.

Among them, he added, are losses in government revenue, lower quality public investment and public services, reduced private investment, and the loss of public confidence in government.

“With such evidence has come a broader consensus on the central importance of transparency and good governance in achieving economic success.

“Numerous studies have shown that where governance is poor, domestic investment and growth suffer.”

He said in a world in which private capital has become more mobile, mounting evidence suggests that corruption undermines the confidence of investors and adversely affects private capital inflows, an important source of economic growth. – November 10, 2022.