Mandatory retirement age review gains support from employers, ageing advocates

New Straits Times

6 days ago

KUALA LUMPUR: The proposal to review Malaysia's mandatory retirement age has gained support from employers and ageing advocacy groups, who are calling for a flexible, sector-sensitive approach with adequate safeguards for both older and younger workers.
Prime Minister Anwar Ibrahim, when tabling the 13th Malaysia Plan (13MP) yesterday, said the government would review the retirement age as the nation transitions towards an ageing society.
Senior Citizens Advisory Council member Tan Sri Lee Lam Thye said the review was timely and necessary, given Malaysia's increasing life expectancy and a growing number of older citizens who remain active and capable.
"Sixty is too young to retire in this day and age. With the average lifespan now exceeding 75, people still want to contribute, and many need to continue working to support themselves or their families," he said.
Lee said the government should consider raising the age gradually, for instance, to 63 first, and then move towards 65 with proper study and stakeholder input.
He also advocated for a flexible retirement model where those who wish to retire can do so, while those willing and able to work may continue.
"Many seniors are still fit, of sound mind, and eager to stay productive. They bring years of experience that can be channelled through roles like mentorship or advisory work," he said.
Addressing concerns that an extended retirement age may affect youth employment, Lee said the government must focus on expanding job creation to avoid intergenerational friction.
"If the government can generate the 1.2 million jobs projected under the plan, both older and younger Malaysians can be meaningfully absorbed into the labour force," he said.
He also urged the swift introduction of the long-proposed Senior Citizens Act to enshrine protections for elderly Malaysians, including employment rights, healthcare access, and public mobility.
Meanwhile, Malaysian Employers Federation (MEF) president Dr Syed Hussain Syed Husman said the move was "sound and forward-looking" but must not be implemented as a blanket policy.
He said MEF supports retaining capable older workers, especially in knowledge-based or strategic roles, but warned that physically demanding jobs in sectors such as construction, agriculture, and manufacturing may not be suitable for employees beyond 60.
"Without proper structure, extending the retirement age could lead to safety risks, productivity losses, and higher medical claims," he said.
He added that older workers may also face challenges in adapting to fast-paced technological changes without sustained, accessible upskilling initiatives.
Syed Hussain said while the extension could reduce dependency on retirement savings and preserve medical coverage, it might also slow promotion pipelines and limit wage growth for younger workers.
"To move forward, we recommend a flexible policy based on health, performance, and job suitability — not a blanket extension," he said.
MEF also called for structured role transitions, such as fixed-term contracts and mentorship roles, alongside tax relief incentives for seniors who remain employed.
"With the right safeguards and support, this policy can help Malaysia harness the full potential of its ageing workforce without compromising youth employment or business competitiveness," he said.