19/02/2025

WEDNESDAY | FEB 19, 2025

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Civil servants urged to improve financial literacy

Malaysia Airlines to receive 19 Airbus jets in stages KUALA LUMPUR: The Malaysia Aviation Group (MAG), the parent company of Malaysia Airlines Bhd, will gradually receive the delivery of the remaining 19 Airbus aircraft from this month until 2026. Transport Deputy Minister Datuk Hasbi Habibollah said Airbus and Rolls Royce were asked to implement stricter quality control measures for the new aircraft deliveries. “Malaysia Airlines is committed to ensuring that the production quality of the ordered aircraft is of the highest standards.” He was replying to Mohd Nazri Abu Hassan (PN-Merbok) in Dewan Rakyat on Monday about the action taken after Malaysia Airlines temporarily suspended operations of its newly received Airbus on Dec 19 due to technical issues. He said their first Airbus, grounded for 48 hours in December due to technical issues, resumed operations after a faulty component was replaced. The aircraft has completed 101 flights without issues. “MAG has one spare engine for the Airbus, with three additional spare engines expected to arrive in stages starting from the third quarter of 2025.” He said the first aircraft was temporarily grounded on Dec 22 and 23 due to technical issues attributed to aircraft manufacturer Airbus and engine supplier Rolls Royce. – Bernama Action taken over cross-dressing Muslim men KUALA LUMPUR: The Islamic Development Department has taken immediate action following viral news of an incident in which several Muslim men were involved in cross-dressing during an entertainment event on Sunday. Its director-general Datuk Dr Sirajuddin Suhaimee said the incident has caused unease among the public and affected the sensitivities of Islam and the country’s culture, Bernama reported. He said the department has contacted the Malaysian Communications and Multimedia Commission to address the issue and ensure appropriate actions are taken under existing laws. “The department will call the relevant parties for further clarification and arrange a closed door discussion to provide advice and guidance. “Islam is a religion of mercy that acknowledges the human desire for entertainment. However, it must be balanced with proper etiquette to not contradict Islamic beliefs, law and ethics.”

Ű BY QIRANA NABILLA MOHD RASHIDI newsdesk@thesundaily.com

o Awareness programmes and stricter controls on loan accessibility could reduce risk of bankruptcy: Cuepacs

Adnan said regular salary structure reviews and the implementation of appropriate allowances should be considered to ensure civil servants do not have to rely excessively on debt to sustain their livelihoods. Economist and Global Labour Organisation Southeast Asia lead Prof Dr Niaz Asadullah said while civil servants enjoy job security and form a stable part of the workforce, news of rising bankruptcy among them could weaken consumer confidence and signal deeper economic vulnerabilities. “Financial distress among civil servants could lead to lower productivity, increased absenteeism and diminished motivation. If employees are preoccupied with financial burdens, service efficiency and decision-making may suffer. “Financial strain may lead to a rise in corruption or misconduct as individuals seek alternative means to meet their financial obligations.” He said aside from reviewing salary structures to better reflect the cost of living, introducing alternative savings and investment schemes could help build long-term financial security, adding that financial institutions should offer systematic debt restructuring options for struggling civil servants. “The 40% net income rule should be reviewed for flexibility in special cases to prevent financial hardship. While it promotes financial stability through ‘forced savings,’ it may also have unintended economic effects. “For lower income civil servants, the cap may limit access to credit for essentials, such as housing, education and medical needs. Over time, reduced spending power could weaken consumer demand and affect businesses.” He warned that the 40% policy unintentionally makes lower income civil servants more financially vulnerable, especially as they already struggle with the rising cost of living. “If they are unable to secure formal loans, they may turn to informal lenders with high interest. This would increase financial distress, so the policy should incorporate flexibility to account for different income levels and essential cost burdens.”

PETALING JAYA: The Congress of Unions of Employees in the Public and Civil Services has urged civil servants to practise better budgetary planning, participate in financial literacy programmes and seek professional advice before committing to long-term monetary obligations. This comes amid concerns over rising debt among civil servants, with 106 of them having faced disciplinary action as of 2023 for bankruptcy due to excessive borrowing. Its president Datuk Dr Adnan Mat said the disciplinary actions are intended to uphold efficiency and integrity in the public service. “Preventive measures, such as financial awareness programmes, stricter controls on loan accessibility and financial management training, should be strengthened to reduce

must adopt prudent financial management practices and carefully assess their needs before taking loans.” He called on the government to review the loan eligibility criteria for civil servants as it could be a proactive measure to address excessive debt issues. He said the current criteria allow civil servants to take loans based on set regulations but there are cases in which their actual financial capacity is exceeded. “A more in-depth assessment is necessary to ensure only those who can genuinely afford repayments are granted loans. Improving financial literacy among civil servants could help them make more responsible financial decisions.”

the risk of such incidents in the future.” Insolvency Department data showed that between 2020 and September 2024, 3,602 civil servants were declared bankrupt, making up 14% of all new cases and showing an increase from 12% in 2020. Adnan said the rule that limits debt commitments to 40% of net income is designed to prevent civil servants from facing financial distress but its effectiveness depends on the cost of living, number of dependents and unexpected expenses. He said in some cases, even with compliance, civil servants struggle financially due to unaccounted expenses. “In addition to the rule, they

Adnan called on the government to review the loan eligibility criteria for civil servants as it could be a proactive measure to address excessive debt issues. – ADAM AMIR HAMZAH/THESUN

Notice of employee termination or death needed for tax clearance KUALA LUMPUR: Employers in the private and public sectors must notify the Inland Revenue Board (IRB) of employee terminations or deaths to facilitate tax clearance. IRB Revenue Collection days after being informed of a death, allowing the IRB to issue a tax clearance letter. returns to their home country,” he said as a guest on the IRB Tax Clinic programme titled “10 Things to Know as a Responsible Employer”, aired on Bernama Radio yesterday. and issue EA statements (for the private sector) and EC statements (for the public sector) to employees by Feb 28 each year. He urged employers to register their roles as employer, employer representative or PCB administrator in MyTax under the new monthly tax deduction service system, e-PCB Plus, before its full implementation.

“Employers are required to withhold any payments due to the employee for 90 days or until the tax clearance letter is issued. “This applies in cases of termination, death or when an employee leaves Malaysia with no intention to return. “This measure ensures tax arrears are settled before the employee starts working for another employer or

“These statements must be provided on time to ensure employees can fulfil their tax obligations by submitting their tax returns to IRB within the stipulated period.” He added that these statements are essential for taxpayers to report their income through e-filing, which will begin on March 1.

He said effective Sept 1, 2024, all requests to amend or add employee information must be submitted through the e-SPC system on the MyTax portal while cancellation requests can still be made manually at the relevant IRB office handling employee tax files. He reminded employers to prepare

“This registration is to ensure a smooth tax submission process and transition to the new system.” Previously, the IRB announced that e-PCB Plus would replace the e-PCB, e-Data PCB and e-CP39 systems by integrating them into a single platform on MyTax. – Bernama

Department public relations officer Azharuddin Mohd Ali said the notification must be submitted through Form CP22A for government employees and Form CP22B for private sector employees. It should be sent at least 30 days before termination or no later than 30