KUCHING: Sarawak’s decision to recruit all new hires for its state civil service under the ‘Jawatan Berasaskan Caruman’ (JBC) or contribution-based-position scheme starting this year, will enhance the overall hiring flexibility and yield long-term financial benefits.
Professor Geoffrey Williams, an economist at Malaysia University of Science and Technology suggested that current civil servants be allowed to transfer their accounts from the traditional pension scheme to JBC.
Although long-serving individuals may not opt for this switch, he believed, those in the early stages of their careers in the civil service may find it attractive.
“The extension of the JBC scheme (for those who wish to switch from pension to JBC) could further improve the workforce’s adaptability and bolster recruitment strategies in the civil service,” he said.
Under the JBC, all new hires will be contributing to the Employees Provident Fund (EPF) retirement scheme and will not receive a monthly pension from the government after retiring.
Speaking to the New Sarawak Tribune, Williams, who is noted for his highly sought-after economic analysis and research, said the significant change in Sarawak’s civil service hiring policy aligned with developments in Peninsula Malaysia or the federal government.
“In fact, Sarawak is doing better with a more positive focus on the current trend, involving the younger generations who prefer to work in different sectors, industries and environments,” he said.
Unlike the emphasis on cost-saving seen in Peninsula Malaysia, he said, Sarawak’s strategy highlights the benefits for civil servants, especially flexibility, career progressions, among others.
With JBC, it facilitates easier transitions for those who wish to go into private sector roles, that offer higher salaries, increased experience, and the potential to return to civil service with enhanced skills and opportunities.
“This progressive approach not only benefits civil servants but also contributes to a more agile and adaptable job market, enhancing human resource management for both individuals and the state government.
“Sarawak’s initiative reflects a commitment to positive policies that foster growth and opportunity for its workforce,” he added.
As for the long-term financial benefits, Williams said this will help to reduce the state government’s expenditures paid out to retired civil servants under the traditional pension scheme.
Last week, State Secretary Datuk Amar Mohamad Abu Bakar Marzuki said all new hires for the state civil service will be recruited under the JBC scheme from this year. However, he assured that they will enjoy permanent positions as well as perks and benefits, similar to those under the traditional pension scheme, such as medical and housing benefits.
He described the strategic move as a “new way of doing things” which is aimed at modernising the Sarawak civil service.
JBC, he said, provides greater flexibility for civil servants who wish to pursue their career elsewhere and also encourages more young and professional individuals to serve in the Sarawak government.
“If we look at the pension scheme under the Public Service Department (JPA), civil servants would not receive anything if they want to leave the civil service before their retirement age.
“Sometimes this (scheme) puts them in a difficult situation, especially when they have better offers from the corporate sector.
“They need to sacrifice their pension scheme if they wish to move to the corporate sector for better career progression.”
He said Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg has instructed all new recruits to be employed under JBC, which will attract more young talents as they are free to go (leave the civil service) anytime.
Abu Bakar explained that it is the same if one day, if they wished to return to serve the state, they can be absorbed back through JBC.
