Retirement review underway
Sim: Proposal to raise limit to 65 being studied by govt panel
KLANG: The Human Resources Ministry is currently reviewing the proposal to raise the mandatory retirement age from 60 to 65, said Minister Steven Sim ( pic ).
He said the matter is being examined by a special committee led by the ministry's deputy secretary-general (policy and international), Dr Mohd Shaharin Umar, as it involves labour laws that fall under the ministry's purview.
He said the ministry will seek input and feedback from stakeholders – especially from the public sector, workers and employers – during the study to ensure compliance with international best practices.
'This committee will assess the suitability of raising the retirement age in Malaysia, as there are both pros and cons, along with certain challenges. However, within the ministry, labour market reforms includes reviewing all 28 existing labour laws.
'This is because some of these laws are outdated. We will look at ways to refine and harmonise them, and there are also (provisions) that we need to abolish or update,' Sim said after the central-level 2025 Union Affairs Development Grant (PHEKS) handover ceremony here yesterday.
On Thursday, Prime Minister Datuk Seri Anwar Ibrahim said the proposal to raise the mandatory retirement age from 60 to 65 is among the issues requiring attention and careful consideration.Minister in the Prime Minister's Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said had previously proposed that the government consider raising the mandatory retirement age.
Azalina, who made the suggestion in her personal capacity, said it would be a loss for individuals to retire at 60 when they are still energetic, productive, and capable of contributing to the workforce.Regarding the event, Sim said the government had allocated RM10mil this year, up from RM5.8mil in 2024, marking the highest amount in the history of PHEKS implementation, as reported by Bernama.
He said the move reflected the ministry's efforts to further strengthen the trade union movement in Malaysia, with the assistance to be used for training and educational programmes aimed at equipping union members with skills in areas such as management and leadership.
'What we are introducing this year focuses on digitalisation, encouraging unions to transition to computer technology and digital systems' he said.
Of the 1,049 assistance applications received, 551 were approved, amounting to RM7.15mil, including 138 applications for the central zone, which covers Selangor and the Federal Territory, worth RM2.1mil.
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