By Media Selangor Team
SHAH ALAM, May 23 — The Malaysian Employers Federation (MEF) has welcomed a proposal to raise the national retirement age to 65, citing the potential of experienced, older workers to continue contributing meaningfully to the economy, but cautioned against a one-size-fits-all policy that could disrupt labour market dynamics.
MEF president Datuk Syed Hussain Syed Husman said the idea aligns with Malaysia’s demographic reality, as the country prepares to become an ageing nation by 2030.
“The proposal reflects a growing recognition that Malaysians are living longer, healthier lives and can remain productive contributors to the economy well beyond the current retirement age of 60,” he told Media Selangor.
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Malaysian Employers Federation president Datuk Syed Hussain Syed Husman. — Picture by MEF[/caption]
He said MEF supports retaining healthy and capable workers, especially in knowledge-based and strategic roles where their skills and institutional memory remain valuable to organisations.
However, he said any policy shift must be carefully designed to reflect the diverse nature of the job market.
“Not all jobs are suited for older workers. Many roles, especially those physically demanding and operationally intensive, may not be feasible for ageing employees beyond the current retirement age.”
Hussain also highlighted risks posed by technological disruptions, saying that without structured and accessible reskilling programmes, some older workers may struggle to adapt to evolving workplace demands.
He also brought up concern about the impact on younger jobseekers, as delaying retirement may limit upward mobility for younger employees and reduce jobs for fresh graduates.
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A file photo of government workers in an office. — Picture by BERNAMA[/caption]
To ensure the policy’s success, MEF suggests greater flexibility and a phased approach, tailored to individual industries and workers’ health and skills.
“Options such as phased retirement, contract extensions, role transitions like mentorship, and targeted training programmes are more sustainable than a blanket increase to the retirement age,” it said.
While supportive in principle, MEF said any move to delay the retirement age must be guided by long-term strategies, including industry-specific measures, business expansion, and job creation.
On Tuesday, Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said suggested the retirement age be raised from 60 to 65, noting that many senior citizens today remain healthy, active and capable of contributing to the workforce.
