The salaries and wages of civil servants will be discussed again when the country’s coffers improve and the nation’s fiscal deficit can be reduced, says Prime Minister Anwar Ibrahim.

He said although he was personally dissatisfied with the salary and wages of public servants when compared to their duties and commitments, the rate of increment needed to be assessed based on the country’s financial capabilities.

"If our coffers improve and the deficit reduces, then we can (increase salaries and wages).

"When I look at civil servants doing good work in the states, and the revenue increases, the process (of raising salary and wages) can be expedited.

"Just that for today, I think it’s difficult. We will discuss it first," he said at a press conference after delivering the mandate to state and federal civil servants in Kota Kinabalu yesterday.

Also present were Sabah Chief Minister Hajiji Noor, Home Minister Saifuddin Nasution Ismail and Minister in the Prime Minister’s Department (Sabah, Sarawak Affairs and Special Functions) Armizan Mohd Ali.

Speaking at the ceremony to deliver the mandate, Anwar said the country was facing a fiscal deficit of 5.6% and a total debt of about RM1.5 trillion, which needed to be given priority in order to ensure the country’s prosperity, especially from an economic point of view.

"These few months, when our return of two billion, three billion, eight billion (ringgit) entered the country’s coffers, not even one sen leaked. If it leaks you all know the things I will do.

"If the country’s coffers are sufficient, civil servants can trust me that I will give priority to your fate… because your service and dedication deserve better salaries and wages," he said.

Anwar urged civil servants to practise integrity and good governance to ensure that the country can be managed well and its finances revived.

"All of you do your work well because there is so much more that we have not resolved, for example the issue of poverty, the Pan Borneo Highway... we will solve it for our people immediately," he said.

Asked about the call to return Labuan to Sabah at the press conference, Anwar said what was important now was for the federal government to work together with the Sabah government to revive the territory as a strong financial centre.

"It is not an issue (returning Labuan back to Sabah). The main issue is, we see some sluggish development in Labuan so we must take measures to try and revive Labuan," he said.

Asked about the proposal to build a bridge between Sabah and Labuan, Anwar said it must be looked into from an economic point of view.

For now, he said, the federal government's stand was "to spend on what we are able to".

On Jan 26, Labuan MP Suhaili Abd Rahman claimed that the federal government was not serious about developing Labuan and that the call for the territory to be returned to Sabah was not out of place considering that the island’s economy had weakened greatly since becoming a federal territory about 38 years ago.