Country should raise minimum wage, says the Malaysian Trades Union Congress
Malaysia should increase the minimum wage, instead of its retirement age to 65, said Malaysian Trades Union Congress (MTUC) deputy president Mohd Effendy Abdul Ghani, following a suggestion by the World Bank to delay the retirement age for Malaysians.
The current employment market is very demanding, and an increase in the retirement age would affect new jobseekers, he told Free Malaysia Today.
“It will affect the younger generation. It is expected that there will be 280,000 new graduates by the end of this year, and there will be an increase in the unemployment rate because of limited job opportunities for them,” said Effendy.
It would be more appropriate if the government were to extend the retirement age on a case-by-case basis, depending on individual sectors, expertise and skills, he added.
Earlier last month, the World Bank released a report studying Malaysia’s ageing population and its impact on the economy. It highlighted that the country has transitioned into an ageing society in 2020, which is defined as having 7% or more of the population aged 65 and above.
After 24 years, Malaysia will become an aged society, with the share of the population aged 65 and above reaching 14%.