KUALA LUMPUR, Jan 23 — The Malaysian Dental Association (MDA) has warned that changes to the Regional Incentive Payment (BIW) under the government’s new public service salary system could undermine dental healthcare services across Sabah, Sarawak and Labuan, particularly by discouraging younger officers from taking up posts in Borneo.

The new BIW structure, which took effect on December 1, 2024, replaces the long-standing percentage-based allowance with a fixed monthly rate. 

While the association welcomed the increase in basic pay under the Public Service Remuneration System (SSPA), it said the shift to a flat rate was “regressive” and failed to reflect the realities of working in Borneo.

MDA cautioned that the reduced allowance could make remote postings less appealing and harder to retain. 

“If the BIW is no longer competitive, healthcare facilities in these regions risk facing difficulties filling critical vacancies,” it said, adding that workforce instability would directly affect dental services, especially in rural communities.

Under the new scheme, newly appointed officers or those transferring into Borneo after the cut-off date receive a much lower flat rate compared with existing officers who remain on the old percentage-based structure. 

MDA said this created an “unequal incentive structure” for officers with the same grade and workload, potentially hurting morale among those just starting in the service.

The group also highlighted the impact on contract dental officers who previously served in Peninsular Malaysia and are now being absorbed permanently in Borneo. 

These officers are considered new appointments and receive BIW as low as RM360 a month. 

The association said this effectively wipes out the gains from the higher base salary. 

“The reduced BIW fails to cover the actual cost of living in Borneo, which is significantly higher than the Peninsula,” it said.

MDA added that many dental officers in Sabah and Sarawak face “critical infrastructure challenges”, including unreliable transport access, frequent water disruptions and unstable electricity supply, particularly in remote districts. 

The lower allowance, it said, “downplays the hardships faced by officers who leave the comfort of their home states to serve communities in Borneo”.

The association stressed that the new BIW rate also does not match the cost-of-living allowance (BISH) received by civil servants in Peninsular Malaysia, raising concerns that it is no longer adequate to offset higher prices in the region.

To address the issue, MDA urged Putrajaya — particularly the Public Service Department (JPA) and the Ministry of Finance — to review the flat-rate mechanism. It called for either a return to the percentage-based calculation or a more competitive revised rate.

“If the fixed-rate method is to continue, the rate must be reviewed periodically to reflect rising living costs in Sabah, Sarawak and Labuan,” the association said. 

It also emphasised the need to protect patient interests and ensure that cost-saving measures “do not compromise the quality of dental healthcare delivery in rural areas”.

MDA reiterated its commitment to work with the Health Ministry to safeguard member welfare and ensure that people in Borneo continue to receive uninterrupted access to quality dental services.