Govt To Review Mandatory Retirement Age Under 13MP

KUALA LUMPUR, July 31 (Bernama) -- The government will review the country’s mandatory retirement age as part of broader preparations as Malaysia transitions into an ageing society, Prime Minister Datuk Seri Anwar Ibrahim announced during the tabling of the 13th Malaysia Plan (13MP) in Parliament today.

The issue is addressed under the ninth strategic thrust of the plan, which focuses on social justice and equitable opportunities for all segments of society.

Anwar, who is also Finance Minister, said the review is essential to ensure the labour ecosystem adapts to demographic shifts.

According to the 13MP document released by the Ministry of Economy, the government plans to strengthen labour policies by updating existing laws to be more responsive to the needs of an ageing workforce.

“Key measures include a revision of the Minimum Retirement Age Act 2012 [Act 753] to introduce provisions for re-employment beyond the current minimum retirement age,” it said.

Additionally, the government is considering increasing the mandatory retirement age for civil servants, based on their respective service schemes, which would necessitate amendments to the Pensions Act 1980 [Act 227].

In May, Anwar stated that the proposal to raise the mandatory retirement age from 60 to 65 years deserved serious consideration, though he stressed the need for a thorough study before any implementation.

At present, Malaysia’s retirement age of 60 is among the lowest globally and in the region. A global pension consultancy previously highlighted this, urging policymakers to align retirement policy with demographic realities as the country moves closer to an ageing nation status.

-- BERNAMA