PETALING JAYA: DAP veteran Lim Kit Siang has called on the Cabinet to freeze all increases in salaries and allowances in government-linked companies (GLCs) and government-linked investment companies (GLICs) until the economy recovers.
He urged the Cabinet to issue a directive to this effect and present it to Parliament on July 18 for its approval.
This comes after FGV Holdings Bhd, which is 80% owned by the Federal Land Development Authority (Felda), agreed to increase its chairman’s annual allowance from RM300,000 to RM480,000 at its annual general meeting yesterday.
The hike, which came into effect yesterday, will also see the six board directors’ allowances increased from RM120,000 to RM150,000.
In a statement today, Lim, the Iskandar Puteri MP, said the increase was “not only excessive in troubled economic times, but downright obscene”.
He said the Cabinet and Parliament must send a strong signal that now was the time for belt-tightening and not for “extravagance and waste”.
He noted that FGV’s decision came only a day after Prime Minister Ismail Sabri Yaacob announced that families who receive Keluarga Malaysia Aid (BKM) cash aid will receive an extra RM100 while BKM recipients who are single will receive an additional RM50.
At the FGV AGM, a provision for the chairman’s use of company cars was also approved, with an annual vehicle allowance of RM180,000 for petrol, toll and maintenance fees.
A formal business allowance of RM1,000 per day will also be provided to the non-executive chairman and non-executive directors to attend meetings with government representatives or third parties such as consultants, bankers and advisers.
FGV is one of the world’s largest producers of crude palm oil (CPO), accounting for about 15% of Malaysia’s total annual CPO production. FMT
When a GLC chief gets RM480k in allowances
‘The money is better used in Felda to help the B40 group.’
Faustus: Some would argue that it is unconscionable to effect such massive disparity in incomes in such manner in our still striving national setting, especially in government-linked companies (GLC), in the civil service and for elected public officials.
It’s both an inequitable, if not an insidious transfer of national wealth to a select few in an emerging economy, where the largest number of wage/income earners pale in disadvantaged comparison in many indicators of development to those with very high incomes.
The Japanese approach towards wage and benefits moderation for the captains of industries and government leaders on a general scale for decades since the 60s fostered a much more cohesive socioeconomic development and normalcy within the nation.
Mosquitobrain: The present sky-high palm oil prices is not to the credit of board members. The credit should go to those Federal Land Development Authority (Felda) settlers who toiled day and night.
Let’s wait and see what will become of FGV when palm oil prices fall below RM300 per ton. Will the board members quit or continue to stay and draw fat salaries with handsome allowances?
Max Fury: It’s unbelievable! At a time when inflation is hitting all of us and the poor are having such a hard time, these “jokers” want to increase their allowances by a disgusting amount.
If the shareholders of FGV Holding Berhad approve this, then I think they are the silliest shareholders around.
The money is better used to reinvest in Felda to bring in higher income to derive taxes for the people. This is very disgusting.
Kilimanjaro: Why has no minister opposed this? A former prime minister pays RM30,000 (to a civil servant) to do nothing, while he (the former PM) is now talking about the welfare of the common man.
There is nothing much one can expect from Prime Minister Ismail Sabri Yaakob. He appears to be lost in the “wilderness”.
Not only this is regretful, this notion of caring for the poor and the concept of “Keluarga Malaysia” (Malaysia Family) is just talk only.
YellowKancil0051: As we’ve seen in the 1MDB trial, GLC board positions are just to reward the cronies of those in power. They get paid huge sums without even attending board meetings.
If our GLCs discard all the political appointees, they might just be profitable again.
Mr Wilson: The increment of RM180,000 in allowance alone is enough to support additional 1,800 families with RM100 each.
What kind of car will need an allowance of RM18,000 per month? A Proton is good enough to visit Felda areas.
It looks like the board of directors are there not to help the Felda folks but just to enrich themselves with their positions.
After all, most of them are previously senior government servants with fat pensions. Are their pensions not enough?
YellowCougar3555: I am sure that there are many HODs (heads of department) in the civil service who would jump at the opportunity to head FGV with such disparate remuneration.
PurpleMoose5046: Ismail Sabri, see what your PN administration has done?
You have happily announced a RM100 allowance for the B40 income group but here your GLC chairperson (Dzulkifli Abd Wahab) has been given an increase of allowance to RM480,000.
The destruction has already started 60 years ago under the administration of Umno and BN.
HMS: The rot started with the trio of former prime minister Dr Mahathir Mohamad, former deputy prime minister Anwar Ibrahim and former finance minister Daim Zainuddin, who were helped by the enablers like MCA, MIC and other BN parties which ruled from the 1980s.
Successive political leadership either did nothing or worsened the investment climate and the country. Pakatan Harapan was not much better. The question is: Is there a solution to our woes in the near future?
It’s going to be a long road to recovery. But in my view, the road to total destruction like Sri Lanka is far, far shorter.
Cyclonus: They have to increase their allowances because prices of chicken, eggs and cooking oil have gone up. The board of directors need sufficient sustenance because they work so hard.
We don’t want them to fall asleep or faint while meeting in air-conditioned rooms wearing suits.
Traveloka Winning: That’s only because being the chairperson of FGV is tough and therefore needs to be compensated accordingly.
It will be very embarrassing if GLC chairperson is being paid like a pauper. Malaysia needs to pay talents if we want to hold our heads high when talking to Mat Sallehs (Westerners).
Kudos to our winning government for raising the allowance for FGV chairperson; you put us on the map and make us the source of envy around the world.
Mano: Do not blame the politicians and the government we voted in or rather in this case, the government that “sneaked” in.
Until the voters wake up and overwhelmingly, with a loud strong voice, vote out these rogues – and we do not get hoodwinked by traitors as we did in G$14 – we will continue reading such shameless stunts of the rich elites making money out of the poor, often the Malay B40 group. MKINI
FREE MALAYSIA TODAY / MKINI