Calls grow for flexible options as Malaysia considers raising retirement age
- Josephine Tan
- Topics: Compliance, Flexible Work, Home Page - News, Malaysia, News
As the Malaysian government considers raising the retirement age from 60 to 65, Cuepacs—the Congress of Unions of Employees in the Public and Civil Services—has urged that flexibility be built into any policy change.
Cuepacs Secretary-General Abdul Rahman Mohd Nordin said that while some civil servants welcome the opportunity to remain active and contribute, others prefer early retirement due to health or personal reasons.
“Extending the retirement age to 65 is subjective and depends on individual and social factors,” he said. “Many women, in fact, would prefer to retire at 55, which was the previous mandatory retirement age.”
He added that the government should allow civil servants to opt for retirement at 60 if the mandatory age is revised and stressed that flexible retirement options would help individuals better plan their futures.
READ MORE: Malaysia’s labour market expands in Q1 2025
The debate was reignited after Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said recently proposed the increase, citing the concept of “active ageing” and the growing number of healthy, experienced older Malaysians. She noted that several neighbouring countries had already raised their retirement thresholds.
Experts agree that the move could have benefits, but also warn of potential unintended consequences. Dr Mohamad Idham Md Razak of Universiti Teknologi Mara said the proposal must be paired with labour reforms, legal protections, and upskilling initiatives to ensure older workers remain relevant.
The Malaysian Employers Federation (MEF) echoed these sentiments, noting the need for a comprehensive strategy. MEF President Datuk Dr Syed Hussain Syed Husman cautioned that prolonged employee tenure could reduce opportunities for young graduates and called for increased investment to generate new jobs, reported New Straits Times.
Malaysia last raised the retirement age in 2012. With the country expected to become an ageing nation by 2035, any new policy must strike a balance between economic needs and employment opportunities across generations.
The future of workforce longevity will be a key topic of discussion at HRM Asia’s CHRO Series Malaysia, taking place from 15 to 17 July 2025 at Sofitel Kuala Lumpur Damansara. To find out more, click here.
