Malaysia explores raising public sector retirement age to 65

A feasibility study is underway to assess the potential of raising the mandatory retirement age for public service employees to 65 by 2035. This initiative is part of a broader strategy under the National Ageing Blueprint (NAB) 2025-2045, which outlines 11 high-impact interventions across government ministries and agencies aimed at preparing the country for demographic shifts.

Deputy Economy Minister Datuk Hanifah Hajar Taib, speaking in parliament, said the NAB was presented to the National Economic Action Council earlier this year, with the goal of transforming Malaysia’s ageing population from a looming challenge into an opportunity for economic and social progress.

Among the proposed measures are plans to boost the participation of older adults aged 60-65 in the labour force by 2030, and to develop a pipeline of skilled caregivers to support the growing demand for eldercare services.

In addition to extending the retirement age, the blueprint recommends encouraging older individuals to remain in or rejoin the workforce for up to five years after reaching the current retirement threshold. This would be supported by initiatives to enhance career mobility and employability among older employees.

The government is also focused on laying the groundwork for a more robust long-term care ecosystem. This includes comprehensive legislation and governance to support sustainable eldercare services, training and standardised certification programmes for both formal and informal caregivers, and expanded access to domiciliary and palliative care services at the community level.

READ MORE: Beyond 60: Why HR holds the key to a human-centred retirement rethink

Other key components of the NAB include strengthening Malaysia’s social protection systems and introducing legislative controls to ensure food quality and safety for vulnerable populations.

The blueprint takes a multi-dimensional approach, encompassing policy planning and action across six pillars: economy, employment, education, social protection, health, and long-term care.

According to Hanifah, these interventions are designed to ensure that Malaysia is well-prepared to meet the demands of being an ageing nation by 2043 while also unlocking the economic potential of older adults through inclusive workforce and social policies, reported New Straits Times.