Latest news with #employmentreform
Malay Mail
23-05-2025
- Business
- Malay Mail
HR Ministry: Review underway on raising Malaysia's retirement age to 65 amid labour reforms
KLANG, May 23 — The Ministry of Human Resources (Kesuma) is currently reviewing the proposal to raise the mandatory retirement age from 60 to 65, said Minister Steven Sim. He said the matter was being examined by a special committee led by Kesuma's deputy secretary-general (Policy and International) Dr Mohd Shaharin Umar as it involved labour laws which fell under the ministry's purview. He said Kesuma would seek input and feedback from stakeholders, especially the public sector, workers, and employers, during the study to ensure compliance with international best practices. 'This committee will look at the suitability of raising the retirement age in Malaysia as there are pros and cons, along with certain challenges. However, within the ministry, part of labour market reforms involves 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 'This is because some of these laws are outdated.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,' he said after the central-level 2025 Union Affairs Development Grant (PHEKS) handover ceremony here today. Yesterday, Prime Minister Datuk Seri Anwar Ibrahim said the proposal to raise the mandatory retirement age from 60 to 65 was 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 from 60 to 65. Azalina, who made the suggestion in her personal capacity, said it would be a loss for individuals to retire at 60 when they were still energetic, productive and capable of contributing to the workforce. Regarding today's event, Sim said the government had allocated a total of RM10 million this year, up from RM5.8 million in 2024, marking the highest amount in the history of PHEKS implementation. He said the move reflected Kesuma'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, where we encourage unions to switch to computer technology and digitalisation,' he said. Of the total 1,049 assistance applications received, 551 were approved, amounting to RM7.15 million, including 138 applications for the Central Zone level covering Selangor and the Federal Territory, worth RM2.1 million. — Bernama
Telegraph
16-05-2025
- Business
- Telegraph
Rayner's workers' rights reforms ‘will make Britain like jobless Spain'
Angela Rayner's worker's rights reforms risks triggering a surge in unemployment that will rival Spain, the president of the Confederation of British Industry (CBI) has warned unions. Rupert Soames said Labour's Employment Rights Bill would make companies less willing to hire those with 'spotty CVs and [those on] benefits'. The CBI chief told union chief Paul Nowak during a debate on the reforms: 'I just humbly suggest you acknowledge that there is a risk that companies turn around and become less willing to employ people and we end up with an economy, for instance, like Spain.' Spain has the highest unemployment rate in Europe at almost 11pc. Youth unemployment is even higher, with more than a quarter of under-25s jobless. Mr Soames drew attention to the Spanish youth unemployment rate when highlighting the risks. Business leaders have repeatedly raised the alarm about the Government's employment rights overhaul, which is being overseen by Angela Rayner, the Deputy Prime Minister. The reforms will empower unions and offer broader eligibility for sick pay, a greater entitlement to flexible work, a crackdown on zero-hour contracts and full employment rights from the first day in a job. While unions argue the changes will give workers a fairer deal, bosses fear the changes will tip the balance of power too much in favour of staff – and fear they will be caught up in a flood of tribunal claims. As a result, Mr Soames and others have warned that employers will be far more reluctant to take on new staff unless they are absolutely convinced of their abilities. In a heated exchange with Mr Nowak, Mr Soames predicted 'a lot more dispute', adding: 'Just ask yourself if that's really a good idea, in our economy – that that's what we want to go and do.' Speaking at a conference organised by workplace body Acas, the grandson of Winston Churchill said: '25 years ago the income per head in the UK was roughly the same as the US. Now it's less than the poorest state in the US. It is far less than Germany – something has gone wrong. 'Collectively we have a big problem here if our country has got massively poorer.' Mr Nowak argued Spain was starting to benefit from labour market reforms which came into effect in 2022. The Southern European nation has one of the fastest growing economies in Europe and the IMF last year found that reforms introduced to tackle the amount of young people on unstable, temporary contracts had so far been successful in boosting permanent work. The union chief urged the Government not to water down its reforms, warning ministers against an 'Employment Rights Bill light'. The Bill is working its way though Parliament, with Lords currently examining the legislation.
