Malaysia incentivises hiring senior employees amid ageing population concerns
- Josephine Tan
- Topics: Compensation and Benefits, Compliance, Home Page - News, Malaysia, News
The Malaysian government is ramping up efforts to involve senior citizens in the workforce, citing both social and economic benefits, Finance Minister II Datuk Seri Amir Hamzah Azizan said.
Speaking during the winding-up of the 13th Malaysia Plan (13MP) debate for his ministry in the Dewan Negara, Amir Hamzah highlighted government support for employers hiring employees aged 60 and above through tax incentives. Introduced in 2019 and now extended to the year of assessment 2025, the initiative aims to provide older employees with a stable source of income.
“Senior citizens taxpayers can also claim a wide range of individual income tax reliefs covering all aspects of life, including personal and dependent care, medical expenses and treatment, retirement, insurance, and lifestyle such as sports activities,” he said.
Amir Hamzah added that the government is developing the National Ageing Blueprint 2025-20245, which will address employment, education, health, and social protection, preparing Malaysia for its transition into an ageing nation.
Citing data from the Department of Statistics Malaysia (DoSM), the minister noted that 42% of senior citizens live in relative poverty, underscoring the need to strengthen retirement savings. He emphasised plans to enhance the Employees Provident Fund (EPF) to ensure sustainable and resilient retirement funds for Malaysians.
READ MORE: Malaysia tables landmark gig workers bill to safeguard 1.2 million workers
One key proposal under review is the introduction of monthly, pension-like withdrawals for EPF contributors. Under the scheme, savings would be split into two portions: a flexible savings component, withdrawable at any time, and an income savings component, disbursed periodically until depleted.
Amir Hamzah stressed that the new mechanism would not affect existing withdrawal rights and would initially apply to new EPF members. Current members would have the option to opt in voluntarily.
“The proposal is still under review, and any decision will only be made after comprehensive stakeholder engagement and careful consideration of members’ long-term interests,” he said, reported New Straits Times.
