23/06/2025

MONDAY | JUNE 23, 2025

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Plan needed to raise retirement age

Rahimah also flagged concerns about financial preparedness. “Only 36% of active Employees Provident Fund (EPF) contributors reach the basic savings threshold of RM240,000 by age 55. “The updated benchmark, based on the Belanjawanku model, is RM650,000 – roughly RM2,690 a month for 20 years. But most low income workers fall short. “A B40 household earning RM3,401 a month may retire with just RM180,000 – enough for only RM750 a month,” she said. Rahimah argued that EPF savings alone are not enough, and called for a three-pillar model: personal savings, a universal pension floor and long-term care insurance. Her colleague, senior research officer Chai Sen Tyng agreed and called for a unified retirement policy that ensures portability of savings across job sectors. “Our system wasn’t built for longer lifespans. “We need a national health financing model that supports people across the life course, from early screening to rehabilitation and community care. “Our healthcare remains too

options remain available, especially for physically demanding jobs.” She said senior workers need adaptable, meaningful roles and the right support to stay healthy and productive. While Sweden has successfully kept senior adults in the workforce, Rahimah said that achievement came after decades of investment in near-universal pension coverage, retraining programmes, and inclusive labour policies – elements that Malaysia currently lacks. “In Sweden, over 80% of those aged 55 to 64 are still working. In Malaysia, it’s just under 50%. “More than half of senior Malaysian workers are in informal employment, with no social protection, limited upskilling and little ergonomic support.” She added that health is another limiting factor. “According to the World Health Organisation, Malaysians aged 60 have an average of 18.5 healthy years remaining, compared with the 21 years in Sweden. “We can’t expect people to work longer if their bodies are already exhausted. Health must be part of the retirement equation.”

hospital-centric, too expensive and often out of reach for older Malaysians.” Chai added that healthy ageing should be viewed as an intergenerational investment, not just a senior citizen issue. “We continue to work in silos. What we need is integrated thinking and coordinated reform.” Former MyAgeing director and gerontology expert Datuk Dr Tengku Aizan Tengku Abdul Hamid echoed this, urging a fundamental rethink of how Malaysia perceives ageing. “Let’s stop asking what older people cost and start asking what value we can unlock from healthy longevity. “Malaysia has the capacity to lead in this space. What we lack is political will and imagination.” Rather than raising the retirement age, she said Malaysia should prioritise reemployment opportunities and flexible work arrangements. “Our institutions haven’t kept up with how people live and work today. It’s time we stop viewing senior adults as dependents and start seeing them as contributors,” she said.

o Experts say framework must be gradual and flexible, with policies in place for skills training, creating age-friendly workplaces and formulating holistic health financing model

Ű BY HARITH KAMAL newsdesk@thesundaily.com

suggested the government consider extending Malaysia’s retirement age to 65, noting that many Malaysians remain active, capable and energetic well into their 60s. Malaysia last raised the retirement age in 2014 — to 60, from 58 in the public sector and 55 in the private sector. However, Rahimah warned that Malaysia is not yet prepared to support adults working into their 70s. She stressed that any changes to the retirement framework must be gradual and flexible, not abrupt. “Working longer must be a choice backed by robust systems, not a necessity born out of financial desperation. “Rather than fixating on a single retirement age, we should link pensionable age to gains in healthy life expectancy, and ensure early-exit

PETALING JAYA: Malaysia could miss out on the untapped economic potential of its ageing population if it fails to act now by investing in skills training and creating age-friendly workplaces for those aged 45 and above. The warning comes from Universiti Putra Malaysia’s Malaysian Research Institute on Ageing (MyAgeing) director, Assoc Prof Dr Rahimah Ibrahim, following a recent call by former Swedish prime minister Fredrik Reinfeldt for countries like Malaysia to consider raising the retirement age to 75 to ease pension pressures. Closer to home, last month Law and Institutional Reform Minister Datuk Seri Azalina Othman Said PETALING JAYA: Raising the retirement age to 75 could unintentionally shrink job opportunities for younger Malaysians, especially in sectors with limited vacancies and tight budgets, warns Universiti Sains Islam Malaysia human resources lecturer Assoc Prof Dr Abdul Rahim Zumrah. “With many young talents entering the job market, employers may struggle to offer positions if senior workers remain in the workforce longer. “Malaysia should proceed with caution. We have many capable young workers across various fields. I believe we should maintain the current retirement policy to ensure they have access to opportunities,” he told theSun . While such a move may offer financial benefits to senior employees, Abdul Rahim said it would be unrealistic for Malaysia without significant reforms in policy and workplace practices. “In theory, it’s beneficial for employees – they continue receiving monthly income and benefits like medical coverage until age 70 or 75. “However, employers may feel weighed down by long term compensation liabilities. It’s fairer to make such extensions optional, as employers are best placed to assess their workers’ productivity and health.” He said senior workers bring both advantages and challenges. While they gain financial stability, employers may face increased operational costs and reduced hiring capacity. “There’s limited room to recruit fresh graduates when

Move may reduce job opportunities for youth

senior staff stay on. Financially, it becomes difficult,” he said, noting that age-related health issues may also require additional support to sustain productivity. Abdul Rahim urged companies to implement workplace adjustments, such as flexible hours, lighter workloads and age-friendly facilities like designated parking for senior staff, particularly in urban settings if they plan to keep on their senior workers. “If employees are allowed to work until 70 or 75, employers should have the autonomy to renew contracts based on individual capacity. “Shorter hours and flexible rest days can keep senior staff engaged without overwhelming them.” He also noted that most employers are open to retaining senior workers, provided they remain productive. “As long as they can prove their value, employers are generally willing to keep them on. “But there’s concern over rising healthcare costs and physical limitations. Such factors could raise total compensation expenses.” However, he supports retaining experienced workers in specialised roles, but stressed that this must be done selectively. “In sectors where expertise and institutional knowledge are critical, retaining or rehiring senior staff makes sense. “But this should be a targeted approach, backed by workplace reforms and a strategy that considers the needs of both generations.” – by Harith Kamal

‘Gold award shows rural youth can conquer world stage’ The students won the award when they beat seven other ensembles from six European countries. – PIC COURTESY OF ZAHID HAMIDI FACEBOOK PAGE

KUALA LUMPUR: The Wind Orchestra from the Mara Junior Science College Ulul Albab Felda Trolak achieved remarkable success by winning the Golden Diploma Award at the 2025 International Wind Orchestra Festival in Prague, the Czech Republic. Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi said the achievement demonstrates that young talents from rural areas have tremendous potential to shine on the global stage. He expressed hope that the victory in the Middle Class category would inspire young people, particularly those from rural communities, to dream big and

in the competition, Malaysia not only succeeded in outperforming seven other orchestra groups from six European countries but also earned the highest scores from the panel of international professional judges. “I witnessed firsthand their talent and discipline at the ‘Desaku Mendunia’ send off concert on May 28 at the Seri Angkasa Auditorium RTM Angkasapuri. The festival (June 20-21) featured 13 orchestra groups from 11 countries and was divided into three categories - Lower Class, Middle Class and Higher Class, based on the difficulty level of the musical pieces and technical abilities of the participants. – Bernama

believe that there are no boundaries to success. “The victory is more than just musical excellence. It symbolises the indomitable spirit of rural youth on the world stage,” he said in a Facebook post yesterday. He added that the triumph belongs not only to the college and Felda but to all Malaysians. He confirmed that the government also will continue investing in arts programmes for youths through ongoing support, equipment and funding. Ahmad Zahid, who is also the Rural and Regional Development minister, said as the sole representative from Asia