Govt reviewing retirement age, legislation to re-employ senior citizens
Human Resources Minister Steven Sim in the Dewan Rakyat said efforts to increase the participation of older workers in the labour force will be intensified as part of initiatives to improve the labour market in the 13th Malaysia Plan.
He said the transition to becoming an ageing society requires immediate adjustments in the labour market.
"In this regard, efforts to increase the participation of older workers in the labour force will be intensified as part of initiatives to improve the labour market.
The ministry has taken early steps in 2025 by implementing labour law reforms, which include reviewing and studying proposed amendments to the Minimum Retirement Age Act 2012.
"This legal review will consider proposals to raise the retirement age to 65 and the introduction of legislation on re-employment with more flexible terms for productive older workers to remain in the labour market," he said in his winding-up session on the 13th Malaysia Plan.
Sim also sought to defend the minimum wage for foreign workers as a system that oppresses any group would eventually harm Malaysians as well.
He said from a legal standpoint, however, the Employment Act 1955 clearly stipulates that minimum wage applies to all workers regardless of nationality.
"The foundation of this issue is not merely about the International Legal Organisation or the law; it is about doing what is right. This is a matter of human rights.
"If some disagree with the human rights argument, then I must remind them that denying foreign workers their right to a minimum wage would have repercussions not only for them but also for local workers.
"When foreign workers' wages are suppressed, the overall labour market wage benchmark will also be pushed downwards. Employers would prioritise hiring foreign workers, and eventually, local workers' wages would be dragged down too," he said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Borneo Post
25 minutes ago
- Borneo Post
Miri MP: National Education Council vital to align policies, strengthen Sabah, Sarawak's voice
Chiew debating in Parliament. MIRI (Aug 22): Miri MP Chiew Choon Man has voiced strong support for the establishment of a National Education Council (NEC), describing it as a vital step to ensure Malaysia's education system remains progressive and globally competitive. Debating the 13th Malaysia Plan in Parliament, Chiew said the proposed council would serve as a one-stop platform to coordinate policies and implementation across ministries, covering all levels from preschool to higher education. 'Education is a shared responsibility. Student performance in the classroom links directly to economic growth, youth development, national sports, the labour market, and science and technology. Yet today, even preschool education involves more than three ministries. This shows clearly education must be managed across ministries, experts and stakeholders,' he said. Chiew added that the NEC would institutionalise cross-ministerial cooperation by bringing together ministries, academic experts, industry, stakeholders, and state governments, particularly Sabah and Sarawak. 'With a whole-of-government governance model, every education programme and allocation will fall under a coordinated national strategy. This avoids duplication, optimises spending, and maximises returns on public investment in education,' he stressed, noting that advanced nations such as Finland and Singapore had long benefited from similar inter-ministerial platforms. He also emphasised that the council would give Sarawak and Sabah a stronger voice at the national level, especially in addressing rural school infrastructure and other long-standing issues. He urged the government to clarify the timeline for the council's establishment, its terms of reference, scope of authority, membership composition, and monitoring mechanisms. Turning to healthcare reform, Chiew said Malaysia's public healthcare system remained overly centralised under the Ministry of Health, causing delays and mismatches between ground-level needs and decisions made in Putrajaya. 'It is time we trust those on the frontlines ― hospital directors, district health officers, and professional staff at our facilities. They should have autonomy to manage finances, human resources, services, and act swiftly when urgent needs arise,' he said. He welcomed the Health White Paper (HWP) 2023, which proposes shifting the Health Ministry's role towards regulation and policy-making while granting public hospitals and health offices operational autonomy as non-profit entities. 'These facilities must continue serving public interest, remain government-owned and publicly funded, but with the flexibility to innovate and tailor services to community needs,' he said. He also called for clear timelines and budgets for health information digitalisation, and urged the government to ensure the proposed standardised health insurance or takaful product remains affordable through subsidies. Chiew Choon Man Dewan Rakyat lead National Education Council
Daily Express
an hour ago
- Daily Express
Studying proposal to raise civil servant retirement to 65
Published on: Friday, August 22, 2025 Published on: Fri, Aug 22, 2025 By: Bernama Text Size: KOTA BHARU: The Government will study a proposal to increase the mandatory retirement age for civil servants to 65 during the 13th Malaysia Plan (RMK-13) period, said Director-General of Public Service (KPPA) Tan Sri Wan Ahmad Dahlan Abdul Aziz. 'At this stage, I cannot provide any definitive outcome, as the study will only commence during the 13MP and is expected to conclude after the plan ends. Advertisement 'However, PSD (Public Service Department) will begin initial assessment earlier, including benchmarking retirement ages in other countries,' he told reporters after visiting Siti Rubiah Mohammad, the widow of the late Kamal Ariffin Mohamed, a retired officer from the Kota Bharu Municipal Council, under the Santuni Pesara outreach programme here Thursday. Wan Ahmad Dahlan noted that several countries already have higher retirement ages than Malaysia, such as Singapore at 62, and Scandinavian nations, where it can go up to 70. Malaysia, too, has certain schemes with extended retirement, including judges who retire at 66. 'This is not an unusual consideration for the government. However, such a policy shift will require a long-term approach and will not be implemented in isolation. 'PSD will engage with various stakeholders, including retirees' associations, the Congress of Unions of Employees in the Public and Civil Services (Cuepacs), and youth associations, as they too will be affected by this policy,' he said. Commenting on concerns that extending the retirement age may affect productivity, Wan Ahmad Dahlan stressed the need for a thorough and evidence-based study. 'We cannot draw premature conclusions. Some countries have successfully maintained productivity despite a higher retirement age,' he added. On July 31, Prime Minister Datuk Seri Anwar Ibrahim, when tabling the 13MP, announced that the retirement age policy would be reviewed as part of Malaysia's transition toward becoming an ageing nation. This is outlined in 13MP's Ninth Strategic Focus Area, which emphasises social justice and equal opportunity for all Malaysians. The Prime Minister also noted that any decision must take into account various factors, including financial implications and the potential impact on employment opportunities for younger workers. In May 2025, Minister in the Prime Minister's Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said had proposed that the government consider raising the mandatory retirement age from 60 to 65, saying that it is a loss to the nation if individuals are forced to retire at 60 despite still being healthy, energetic, and able to contribute meaningfully to the workforce. Currently, the mandatory retirement age for public sector employees in Malaysia is 60. This is also the minimum retirement age for private sector workers, as stipulated under the Minimum Retirement Age Act 2012. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
New Straits Times
an hour ago
- New Straits Times
Malaysians can now check eligibility for RM100 Sara aid
KUALA LUMPUR: Some 22 million MyKad holders can now check their eligibility for the Sumbangan Asas Rahmah (Sara) via the official portal — The Finance Ministry said in a statement Malaysians aged 18 and above, born in 2007 or earlier, were eligible for the assistance — including existing Sara recipients. "No registration or application is required, as eligibility for Sara is determined automatically based on the National Registration Department's MyKad records. "Members of the public are, therefore, advised not to fall victim to scams, as Sara assistance will be credited directly to recipients' MyKad accounts," it said. The ministry said the RM100 Sara credit would be deposited from Aug 31 and could be used until Dec 31. To ensure equitable distribution of the nation's resources, the ministry added, any unused Sara balance at the end of the year would be reallocated to vulnerable groups via Madani programmes to be determined later. "Recipients may also choose to use the assistance to buy essential goods and donate them to those in need, including non-governmental organisations, places of worship and other charitable causes. "Households collectively have the potential to receive a larger total of Sara credits. For instance, a family comprising a husband, wife and two children aged 18 or above would be entitled to RM400 in total," it said. The ministry said the Sara assistance could be spent at more than 7,300 registered retail outlets nationwide — a number expected to increase — covering over 100,000 essential items. "Recipients may also refer to the Frequently Asked Questions (FAQ), store listings by city and purchasing guidelines available on the official portal." With the rollout of Sara, it said the combined allocation for the Sumbangan Tunai Rahmah and Sara programmes would increase from RM13 billion to RM15 billion this year — 50 per cent more than the RM10 billion allocated last year.
