Key facts
- Malaysia's mandatory retirement age is currently 60 for both the private sector and civil servants.
- Former EPF CEO Tan Sri Shahril Ridza Ridzuan called for a review of the retirement age, citing longer life expectancy and willingness to work past 60.
- The Malaysian Trades Union Congress (MTUC) proposed raising the private-sector retirement age to 65.
- The Malaysian Employers Federation (MEF) advised against a blanket increase, favoring flexible retirement options.
- Prime Minister Datuk Seri Anwar Ibrahim stated that individuals should have the choice to work beyond 60.
Malaysia is grappling with a debate over whether to raise the mandatory retirement age beyond 60, a proposal that has elicited mixed reactions from the public. The discussion has been amplified by calls from prominent figures and organizations, reflecting a growing awareness of longer life expectancies and increasing living costs.
Former Employees Provident Fund (EPF) chief executive officer Tan Sri Shahril Ridza Ridzuan has reignited the debate, suggesting a review of the current retirement age. He noted that many Malaysians are willing and able to remain economically active past 60, advocating for more flexible retirement arrangements. This sentiment was echoed by Prime Minister Datuk Seri Anwar Ibrahim, who stated that individuals should be given the choice to work beyond age 60, emphasizing that focusing solely on raising the retirement floor is only part of the solution.
The Malaysian Trades Union Congress (MTUC) has backed the idea, reiterating its proposal to increase the private-sector retirement age to 65. MTUC president Datuk Abdul Halim Mansor argued that this move would boost EPF savings, reduce reliance on foreign workers, and keep employees physically and mentally active, stressing the need for amendments to the Minimum Retirement Age Act 2012 to ensure continued protection under EPF, SOCSO, and the Employment Act.
However, the Malaysian Employers Federation (MEF) has cautioned against a uniform increase, with adviser Datuk Syed Hussain Syed Husman suggesting that retirement decisions should remain flexible and based on individual choice. MEF noted that consultancy and contract work already offer options for retirees. Concerns have also been raised by some Malaysians that a higher retirement age could limit employment opportunities for younger workers and create workplace culture differences.
Individual perspectives highlight the division. Actor Chew Kin Wah, 61, continues to work selectively, stating that retirement is not a consideration when enjoying one's work and that financial considerations play a role. Translator Fadli Nazari, 43, supports raising the age, believing it allows those who are healthy and derive purpose from their careers to continue working. IT technologist Pavitran Ravindran, 28, also supports the proposal, linking it to longer life expectancy and rising living costs, and dismissing concerns about younger workers' opportunities. Conversely, communication manager Mohd Fadzli Farid, 40, opposes the move, suggesting that upskilling and reskilling programs would be more beneficial for older workers, allowing them to take on flexible roles without hindering younger job seekers. PR consultant Puteri Nurzulaikha Saadon, 25, also opposes it, citing the need for younger workers' opportunities and potential workplace culture clashes.