24/05/2025

SATURDAY | MAY 24, 2025

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Tapping expertise of retirees to bridge skills gap

Local firms awarded aerospace recognition LANGKAWI: Four

Malaysian

aerospace were honoured for their excellence and dedication in meeting global aerospace quality standards. They are ECA Skytech Solutions Sdn Bhd, Vencast Aerospace Sdn Bhd, Ikramatic Systems Sdn Bhd and SME Aerospace Sdn Bhd. Sirim QAS International, M’sia’s leading conformity assessment body, held an awards ceremony at the Langkawi International Maritime and Aerospace Exhibition (LIMA ‘25) to recognise companies that have achieved the internationally recognised AS9100 Aerospace Quality Management System certification. The certification, governed by the International Aerospace Quality Group, is a global benchmark for quality management systems in the aerospace sector. It affirms the recipients’ commitment to operational safety, regulatory compliance and quality assurance, reported Bernama. “This is a strategic milestone. Many local and international aerospace organisations expressed strong interest to obtain the AS9100 certification. It shows increasing confidence in M’sia’s certification capabilities and the growing of internationally recognised quality standards in the aerospace sector,” said Sirim QAS CEO Md Adha Rahmat. The ceremony was offciated by Md Adha and witnessed by Trade and Industry Deputy Minister Liew Chin Tong, Sirim Bhd chairman Datuk Khairol Anuar Mohamad Tawi and Naico Malaysia CEO Prof Shamsul Kamar Abu Samah. Long-range air defence radar system for RMAF LANGKAWI: The Malaysian Communications and Multimedia Commission (MCMC) and the Defence Ministry yesterday inked a deal to develop a long-range air defence radar system for the Royal Malaysian Air Force. The deal, which was signed during LIMA ’25, was witnessed by Defence Minister Datuk Seri Mohamed Khaled Nordin, MCMC executive chairman Tan Sri Mohamad Salim Fateh Din and ministry secretary general Datuk Lokman Hakim Ali formalised the deal In a joint statement, MCMC and the ministry said the partnership aims to bolster national defence through advanced communication and security technologies, with the radar system enhancing airspace surveillance in southern Peninsular Malaysia. The initiative underscores the government’s commitment to national security and reflects a whole-of-government approach to interagency collaboration for strategic defence infrastructure development. – Bernama companies

suspend enforcement and initiate consultations with industry stakeholders. It is also calling for possible exemptions or streamlined procedures for smaller firms and specific job categories. “We support fair labour practices and legal compliance, but such policies must be introduced with balance and foresight, especially given that SMEs form the backbone of our economy.” Representing over 1,800 members in the electrical and electronics sector, TEEAM said it is ready for constructive dialogue to ensure that regulatory reforms safeguard both workers’ rights and business sustainability. “With the rise of Malaysia’s services and knowledge-based economy, there’s a strong foundation for this. Companies could retain critical skills by engaging skilled retirees in part-time advisory or training roles, mitigating the loss of talent through retirement or emigration.” He added that this could also help address M’sia’s twin challenges of skill shortages and brain drain – in critical sectors such as healthcare, engineering and finance, while reducing reliance on foreign labour. He, however, cautioned that such benefits will remain out of reach if labour policies do not support flexible work patterns and if industries maintain rigid hiring criteria. Malaysian Employers Federation (MEF) president Datuk Dr Syed Hussain Syed Husman said MEF views flexibility as vital when shaping retirement policy. Rather than enforcing a blanket increase in the retirement age, decisions should reflect individual health, fitness and skill relevance. “Allowing older employees to transition into mentorship, consultancy or part-time roles will optimise their expertise and create space and career pathways for younger workers.” Syed Hussain added that any move to raise the retirement age must be accompanied by tailored strategies and industry-specific policies, alongside initiatives such as upskilling, job creation and support for business growth. “With the right safeguards, such a policy can help Malaysia unlock the full potential of its ageing workforce without undermining job prospects for younger generations.” Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said recently proposed that the mandatory retirement age be raised from 60 to 65. She said it was a loss to make capable individuals retire at 60 when many remain energetic and productive. Malaysia has raised the retirement age three times – from 55 to 56 in 2001, to 58 in 2008 and to 60 in 2012 under the Minimum Retirement Age Act, which took effect in July 2013.

individuals into consultancy roles, instead of full time positions, could yield substantial economic gains. Firms, he said could harness deep expertise without bearing the cost of permanent employment, including pensions and long-term benefits. “This allows experienced professionals to contribute through flexible roles, spurring innovation and mentorship while preserving their economic influence and supporting domestic demand.” He added that retaining seasoned workers also preserves institutional memory, which is a significant advantage in sectors requiring specialised knowledge. Mohamad Idham said if implemented correctly, the shift would not disadvantage younger workers. Instead, he said a multigenerational workforce which combines retiree consultants and new entrants could enhance overall productivity and foster knowledge transfer. over 60

o Rehiring senior professionals as consultants could ease talent shortages, enhance productivity, foster knowledge transfer and boost economic growth, say experts

Ű BY QIRANA NABILLA MOHD RASHIDI newsdesk@thesundaily.com

as Japan and Singapore, which have successfully retained older workers through flexible employment and consultancy systems. “They have adopted phased retirement schemes, tax incentives for part-time employment and skills matching systems to fully utilise experienced labour while ensuring opportunities remain for younger workers. “Malaysia’s demographic landscape requires a balance adapting such strategies to local industries, especially in manufacturing and digital services. This could be key to managing population shifts while supporting growth.” Mohamad said transitioning

PETALING JAYA: As Malaysia grapples with a greying workforce and widening skills gap, experts are calling for a fresh approach – rehiring retirees as consultants. They argue that doing so could be a game changer for both businesses and emerging talent, as well address pressing economic challenges. Universiti Teknologi Mara Academy of SME and Entrepreneurship Development coordinator Dr Mohamad Idham Md Razak said Malaysia can draw valuable lessons from countries such

Mohamad Idham says transitioning individuals over 60 into consultancy roles instead of full-time positions could yield substantial economic gains. – AMIRUL SYAFIQ/THESUN

Electrical, electronics sector object to blanket stamp duty

PETALING JAYA: The Electrical and Electronics Association of Malaysia (TEEAM) is strongly opposed to the recent enforcement of mandatory stamping for all employment contracts, warning that the policy could cause undue financial and administrative strain on small and medium enterprises (SMEs). Reacting to reports on May 17 that all job contracts must now be stamped under the Stamp Act 1949, TEEAM said the move, while well intentioned, overlooks practical implications for SMEs and risks Ű BY DEEPALAKSHMI MANICKAM newsdesk@thesundaily.com

significant burden. “The added bureaucracy will also slow down hiring, hurt productivity and damage Malaysia’s global competitiveness.” He said many SMEs are already grappling with rising operational costs, compliance obligations under the progressive wage policy, and the broader demands of post-pandemic economic recovery. The sudden implementation of the stamping rule, without stakeholder consultation or a phased rollout, could stall growth, reduce job creation and deter investment, he added. TEEAM urged the Inland Revenue Board and Finance Ministry to

undermining business efficiency, particularly in sectors that rely on speed and flexibility. Acknowledging the government’s aim to strengthen legal protection for both employees and employers, TEEAM president Chang Yew Cheong said the blanket RM10 stamp duty per contract, regardless of employment duration or wage level, would disproportionately impact businesses employing large numbers of short term or low-income workers. “The cost may seem minor on a per-contract basis, but when applied across hundreds or thousands of contracts involving casual, contract and temporary workers, it becomes a