22-05-2025
MICSEA proposes flexible retirement option, warns of challenges
Lai says the government should introduce clear retirement guidelines that take into account the physical demands faced by older workers, particularly in certain sectors. – Bernama photo
KUCHING (May 23): The Malaysian Industrial Commercial Services Employers Association (MICSEA) has proposed a flexible retirement framework that allows workers the option to retire earlier or remain in the workforce up to age 65.
Its president YK Lai said the government should introduce clear retirement guidelines that take into account the physical demands faced by older workers, particularly in certain sectors.
He added that stronger statutory protections are needed to safeguard both younger and older workers to ensure fair treatment across the board.
'Furthermore, we recommend improving hiring strategies for younger workers by providing structured career pathways, while ensuring these efforts do not disadvantage aged employees who choose to remain in the workforce.
'There should also be targeted support for low-income and manual workers, many of whom may not equally benefit from extended employment without proper assistance,' he said in a statement yesterday, in response to the government's recent initiative to study extending the retirement age to 65.
Lai noted that with Malaysia's rising life expectancy, many senior employees remain willing and capable of continuing to work beyond the current retirement threshold. However, he stressed that any such change must be supported by proper policy frameworks.
He also cautioned against the potential risk of limiting job opportunities for young Malaysians, which could threaten generational equity in the job market.
'Many Malaysians, particularly those in demanding roles, have raised valid concerns that a higher retirement age could impose undue burden on older workers and worsen financial stress among low-income groups.
'For businesses, especially in industrial and service sectors, this proposal introduces complex challenges in workforce planning, occupational health and safety, and employee benefits,' he added.
Lai emphasised that a one-size-fits-all approach would not meet the diverse needs of Malaysia's workforce.
He urged the adoption of a flexible retirement policy – one that is carefully managed to prevent inequality and ensure long-term sustainability.
'As the voice of employers across Malaysia's industrial, commercial, and service sectors, MICSEA is committed to shaping this transition responsibly and sustainably, should the suggestion to increase the retirement age to 65 be implemented.
'We encourage policymakers, business leaders, and HR professionals to collaborate with the government to design a retirement strategy that is progressive and reflective of the realities faced by Malaysian workers,' he added.
