KLANG, May 23 — The Ministry of Human Resources (Kesuma) is currently reviewing the proposal to raise the mandatory retirement age from 60 to 65, said Minister Steven Sim.
He said the matter was being examined by a special committee led by Kesuma’s deputy secretary-general (Policy and International) Dr Mohd Shaharin Umar as it involved labour laws which fell under the ministry’s purview.
He said Kesuma would seek input and feedback from stakeholders, especially the public sector, workers, and employers, during the study to ensure compliance with international best practices.
“This committee will look at the suitability of raising the retirement age in Malaysia as there are pros and cons, along with certain challenges. However, within the ministry, part of labour market reforms involves reviewing all 28 existing labour laws
“This is because some of these laws are outdated. We will look at ways to refine and harmonise them, and there are also (provisions) that we need to abolish or update,” he said after the central-level 2025 Union Affairs Development Grant (PHEKS) handover ceremony here today.
Yesterday, Prime Minister Datuk Seri Anwar Ibrahim said the proposal to raise the mandatory retirement age from 60 to 65 was among the issues requiring attention and careful consideration.
Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said had previously proposed that the government consider raising the mandatory retirement age from 60 to 65.
Azalina, who made the suggestion in her personal capacity, said it would be a loss for individuals to retire at 60 when they were still energetic, productive and capable of contributing to the workforce.
Regarding today’s event, Sim said the government had allocated a total of RM10 million this year, up from RM5.8 million in 2024, marking the highest amount in the history of PHEKS implementation.
He said the move reflected Kesuma’s efforts to further strengthen the trade union movement in Malaysia, with the assistance to be used for training and educational programmes aimed at equipping union members with skills in areas such as management and leadership.
“What we are introducing this year focuses on digitalisation, where we encourage unions to switch to computer technology and digitalisation,” he said.
Of the total 1,049 assistance applications received, 551 were approved, amounting to RM7.15 million, including 138 applications for the Central Zone level covering Selangor and the Federal Territory, worth RM2.1 million. — Bernama
Malay Mail. (2025, May 23). HR Ministry: Review underway on raising Malaysia’s retirement age to 65 amid labour reforms. Malaysian Mail. Retrieved from https://www.malaymail.com/amp/news/malaysia/2025/05/23/hr-ministry-review-underway-on-raising-malaysias-retirement-age-to-65-amid-labour-reforms/177871
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