STARTING next year, new appointments in the public service may no longer be made under the permanent and pension schemes, which are poised to be replaced by an improved contractual plan.

Director-General of Public Service Borhan Dolah said the matter was decided at a special reform panel meeting last October, which saw the need for the sector to be more “needs-based”, as well as for the burden of pensions, which now amount to some RM28 billion, to be reduced.

The new contractual scheme, currently being studied, will offer better pay, welfare and protection, he told reporters after opening the Conference on Human Resource Management in the Public Sector 2019 in Putrajaya yesterday.

“Contractual appointments may not enjoy the benefits of the existing permanent and pension schemes, such as housing and car loans, but these benefits may be translated into higher allowances.”

He said such appointments are more dynamic, tailored to the “less loyal” Generation Y, and give them the option of leaving the public service after having served a certain period.

The proposed new scheme will be subjected to the Public Service Act, which protects the interests of civil servants in both permanent and contract roles, and ensures a fair termination process.

“Therefore, no one can be appointed on a contract basis today and have their services simply ended the next day,” said Borhan.

Those already in the civil service may be given the option to switch to the new plan, he said, adding that under the contractual scheme, the sector can save RM5 billion a year.

He said there is a plan to merge the Public Service Department and Public Service Commission.

He gave as an example Thailand, which has a single commission for public service affairs. – Bernama, September 5, 2019.