KUALA LUMPUR (July 20): Putrajaya is not looking to trim the civil service workforce, notwithstanding its disproportionate size or the country’s challenging fiscal position, Finance Minister Lim Guan Eng assured today.

But the Government is keen to improve the productivity of the civil service, he said.

At a special luncheon event organised by the Associated Chinese Chamber of Commerce and Industry Malaysia (ACCCIM), Lim said the government, as an employer of the 1.6 million strong civil service workforce, is responsible for their welfare.

“At this juncture, we do not intend to cut their pay, but in future, our approach will be to look into ways to increase their productivity,” he said in response to a question by RHB Research chief Asean economist Peck Boon Soon on how the Government would broaden its revenue stream while lowering its operational cost, and whether cost-cutting measures include downsizing the civil service workforce.

Previously the Chief Minister of Penang, Lim said improving the productivity of Government employees could make the country more business friendly, and foster a better economy.

“In Penang, we didn't increase our taxes. Land-related tax rates are still the same, but our tax revenue increased because the economy has broadened due to business friendly policies. More development and business activities have increased the tax revenue.”

He also stressed cost savings could be achieved by doing away with direct negotiations in the award of contracts, and implementing open tenders.