Steven Sim: Retirement age among 28 labour laws under review

New Straits Times

23-05-2025

SHAH ALAM: The issue of the retirement age is among 28 labour laws under the purview of the Human Resources Ministry (Kesuma) currently undergoing review, reforms and updates.
Human Resources Minister Steven Sim said the matter was being considered carefully, taking into account the suitability of any changes in the Malaysian context, as there are both pros and cons to raising the retirement age.
"This issue has its benefits, but also comes with its own challenges. However, Kesuma is already planning various labour market reforms, including reviewing all 28 labour laws under the ministry's jurisdiction.
"Some of these laws are outdated, so we are looking at how to streamline, harmonise, and in some cases, repeal or update certain provisions.
"I don't want to focus solely on the retirement age issue because there are many aspects within the legislation that require re-evaluation.
"We are working to harmonise these laws with the ultimate aim of ensuring Malaysia's labour laws are in line with international best practices," he said when asked to comment on a proposal to raise the retirement age to 65.
He was speaking at a press conference after officiating the Central Zone 2025 Trade Union Affairs Programme (Pheks) aid handover ceremony here today.
Sim said the review and assessment of the 28 labour laws are currently ongoing.
"We are gathering input and feedback from stakeholders, particularly from the public sector, the government, workers, and employers," he added.
Yesterday, Prime Minister Datuk Seri Anwar Ibrahim was reported as saying that the proposal to extend the retirement age to 65 should be given serious consideration.
On May 20, 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.
Azalina, sharing her personal opinion, said it was a loss to compel individuals to retire at 60 when many are still energetic, productive, and capable of contributing to the workforce.
Meanwhile, commenting on today's event, Sim said Kesuma has allocated RM10 million for Pheks this year, compared with RM5.8 million in 2024, the largest increase in the programme's history.
"This reflects Kesuma's commitment to strengthening the trade union movement in Malaysia.
"The aid can be used for training and education programmes. We want union members to receive proper training, including in skills development, management, leadership, and more.
"Secondly, this year we are introducing support for digitalisation, encouraging unions to adopt computer technology and move towards digital platforms," he said.
To date, a total of 1,049 applications for the aid have been received, with 551 applications approved amounting to RM7.15 million. This includes 138 applications from the central zone, covering Selangor and the Federal Territories, worth RM2.1 million.