KUALA LUMPUR: The Human Resources Ministry is reviewing proposals to raise the retirement age to 65 and the introduction of legislation on re-employment with more flexible terms for productive older workers to remain in the labour market.
Human Resources Minister Steven Sim in the Dewan Rakyat said efforts to increase the participation of older workers in the labour force will be intensified as part of initiatives to improve the labour market in the 13th Malaysia Plan.
He said the transition to becoming an ageing society requires immediate adjustments in the labour market.
“In this regard, efforts to increase the participation of older workers in the labour force will be intensified as part of initiatives to improve the labour market.
The ministry has taken early steps in 2025 by implementing labour law reforms, which include reviewing and studying proposed amendments to the Minimum Retirement Age Act 2012.
“This legal review will consider proposals to raise the retirement age to 65 and the introduction of legislation on re-employment with more flexible terms for productive older workers to remain in the labour market,” he said in his winding-up session on the 13th Malaysia Plan.
Sim also sought to defend the minimum wage for foreign workers as a system that oppresses any group would eventually harm Malaysians as well.
He said from a legal standpoint, however, the Employment Act 1955 clearly stipulates that minimum wage applies to all workers regardless of nationality.
“The foundation of this issue is not merely about the International Legal Organisation or the law; it is about doing what is right. This is a matter of human rights.
“If some disagree with the human rights argument, then I must remind them that denying foreign workers their right to a minimum wage would have repercussions not only for them but also for local workers.
“When foreign workers’ wages are suppressed, the overall labour market wage benchmark will also be pushed downwards. Employers would prioritise hiring foreign workers, and eventually, local workers’ wages would be dragged down too,” he said.
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