KUALA LUMPUR, March 16- The Malaysian Employers Federation (MEF) has formally declared its opposition to a mandatory increase in the national retirement age, currently set at 60. President Datuk Dr. Syed Hussain Syed Husman emphasized that while retirement remains a “sensitive and personal issue,” the government must prioritize creating space for the country’s younger workforce.
The federation argues that unlike aging nations such as Singapore, Malaysia possesses a robust young population that is currently facing challenges with unemployment and underemployment. Rather than a blanket legislative extension, the MEF suggests a flexible, industry-led approach. Under this proposal, individual sectors or businesses would decide whether to retain staff past the age of 60 based on specific skill requirements. Any extension would be subject to a mutual agreement between the employer and the employee on newly agreed terms.
“To force all people to extend their retirement is not right,” Syed Hussain stated, noting that many Malaysians look forward to retiring on time to pursue personal interests, while others may only wish to continue due to a lack of financial planning.
The MEF highlighted several practical barriers to a mandatory extension:
- Physical Limitations: Many sectors involve physically taxing labor and high mobility, which may not be suitable for an aging workforce.
- Technological Adaptation: With the rapid rise of Artificial Intelligence (AI) and automation, the nature of jobs is shifting. The MEF notes that elderly employees would face significant challenges in adapting to these high-tech transitions.
- Labor Supply: Syed Hussain clarified that Malaysia does not currently suffer from a labor shortage that would justify keeping older workers in the system at the expense of new graduates.
Addressing the recent trend of neighboring countries raising retirement ages, the MEF president cautioned against direct comparisons with Singapore. He noted that Singapore is aging significantly faster and lacks a local population to support its labor needs, making it dependent on foreign labor. “Singapore finds ways to keep their local employees. It makes sense to them. Not for Malaysia,” he added.
The federation’s primary concern remains the “accommodation” of the younger generation. By maintaining the retirement age at 60, the MEF believes the economy can better absorb fresh talent and address the “mismatch” in the current labor market where many young people are overqualified for their current roles.
