'There is a pressing need to set salaries and compensation to the right levels to ensure that the Bench can attract and retain the very best of the nation's talent,' Prime Minister Abdullah Badawi said yesterday.

He did not give details.

Judges' remuneration is determined by a law of Parliament. In general, judges draw salaries of RM11,000 (S$4,700) to RM15,000 a month, in addition to other perks.

The announcement was made last night at a special dinner hosted by the Malaysian Bar, a grouping of the country's 12,000 lawyers, organised for the Prime Minister to unveil his plans for judicial reform.

Public confidence in the Bench has been in free fall since 1988 when the top judge, Tun Salleh Abas, and two other judges were sacked for reasons always suspected to be politically motivated.

Further scandals like the fixing of judicial appointments and case-fixing have tarnished its reputation so badly that foreign investors routinely refuse to take their disputes to Malaysian courts.

This is the first time that the government is undertaking an overhaul of the judicial system, including setting up a Judicial Appointments Commission to recommend judgeships.

This removes the top judge's current sole prerogative to make recommendations, a power that has often been criticised as leading to an appointment system lacking accountability and transparency.

'The government proposes a change to make the process of nominating, appointing and promoting judges more transparent and representative,' Datuk Seri Abdullah said.

The reforms are part of a series of sweeping changes being announced by the Prime Minister in the wake of the March 8 elections which sent the ruling Barisan Nasional coalition reeling from crushing losses.

He also announced the extension of the retirement age for civil servants to 60, and measures to resolve disputes over religious conversion.

It is a clear attempt to seize the reform agenda from the opposition.

In the case of judicial reforms, it also serves double duty as a means to silence his strongest critic and predecessor, Tun Dr Mahathir Mohamad.

The downslide in the judiciary has largely been blamed on the former premier, who centralised power in his grip.

'The process to bring about this change will begin now,' said Datuk Seri Abdullah.

The government also offered ex gratia payments to the judges who lost their jobs in 1988, and acknowledged 'the pain and the loss they have endured'. The amounts were not disclosed.

'I do not presume to equate your contributions, pain and loss with mere currency, but I hope you could accept this as a heartfelt and sincere gesture to mend what has been,' said the Prime Minister.

The judges and their families were present at the dinner, along with several top opposition leaders, including parliamentary opposition leader Wan Azizah Ismail.

The Prime Minister, however, indicated that past decisions would not be revisited as 'it would only serve to prolong the sense of crisis'.

De facto Law Minister Zaid Ibrahim told The Straits Times that the Judicial Commission is expected to be set up within the year.

It will comprise 12 to 15 respected members, including retired judges and lawyers. The Prime Minister will not be bound by its recommendations.

Datuk Zaid said the recommendations would be made purely on merit and judicial attributes, adding that judges would no longer be overwhelmingly chosen from the government service or among Malay lawyers only.

carolynh@sph.com.sg