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The Human Resources Ministry is reviewing proposals to increase the retirement age beyond 65 as part of broader reforms to address Malaysia's transition into an ageing nation
Speaking at the Dewan Rakyat yesterday, 21 August, Human Resources Minister Steven Sim said the government is considering a mechanism to rehire retirees on more flexible terms, allowing productive older workers to remain in the labour market.
As outlined in the 13th Malaysia Plan, he said, efforts will be intensified to address the challenges of an ageing population.
"The ministry has taken early steps in 2025 by examining labour law reforms, which include reviewing the proposed amendments to the Minimum Retirement Age Act 2012," he said.
Sim added that raising the retirement age is part of the ministry's ongoing review of 28 labour laws under its purview.
"The review will look into the possibility of introducing new legislation, mechanisms, and policies that support more flexible re-employment opportunities for older workers who wish to remain in the workforce," he explained.
Human Resources Minister Steven Sim.
Image via Bernama via New Straits TimesThe minister also assured that these efforts will not reduce job opportunities for the younger generation
"The ministry also considers the long-term impact on youth employment, ensuring that any policy change will not add further pressure to the national labour market.
"The main focus is to maintain a balance between retaining experienced workers and providing opportunities for the younger generation to secure jobs suited to their qualifications," Sim said in a parliamentary written reply.
Watch Sim speak about the proposal in the video below at the 1:43:20 mark:
