“If we increase salaries, the budget deficit may rise to 6.5%,” he said, adding this will deter investors as it would give the impression the government lacked the political will to properly manage the country.

“So be patient for a while,” he told reporters after an event.

Anwar said, in principle, he agreed with demands to increase civil servants’ salaries.

However, civil servants must also consider the state of the country’s finances and the welfare of the people, he said.

He added the country’s debts had risen to RM1.5 trillion and that it had a high budget deficit.

Anwar said the government’s focus right now is on assisting the hardcore poor who are struggling to survive, including fishermen, rubber tappers, and farmers.

“If we look at it from that point of view, we would understand,” he said.

On Friday, Cuepacs president Adnan Mat said the budget did not contain any commitment to raise civil servant salaries to help them cope with the increase in the cost of living.

Adnan said civil servants are now hoping for a better wage system as it has not been revised since November 2002 and it is not acceptable given the current economic situation.

On Friday, Anwar tabled Budget 2023, announcing an allocation of RM388.1 billion.

Among the goodies that were announced for civil servants include early redemption of cash in lieu of accumulated leave (GCR) of up to 50% with a maximum of 90 days, as well as the provision of Aidilfitri special financial assistance of RM700 to all civil servants Grade 56 and below, including those on contract.