KUALA LUMPUR: There is a policy need to raise the retirement age from 60 to 65 years for both the private and public sectors, said Minister in the Prime Minister’s Department (Federal Territories) Datuk Seri Dr Zaliha Mustafa.
She said the Public Service Department (PSD), however, is not rushing into the matter and is currently conducting a comprehensive study.
“The National Ageing Blueprint under the Economy Ministry has identified the need to raise the retirement age from 60 to 65 years across both sectors.
“However, PSD is taking a cautious approach and is carrying out a thorough study covering aspects such as health, productivity, promotion opportunities for younger officers, as well as the short- and long-term fiscal implications,” she said during her winding-up speech on the 13th Malaysia Plan.
Previously, six members of parliament had proposed raising the mandatory retirement age for civil servants to 65, while also expressing concerns about the potential impact on job opportunities for fresh graduates and calling for a phased implementation.
Dr Zaliha said discussions with the Congress of Unions of Employees in the Public and Civil Services (Cuepacs) had highlighted several areas that required further examination, including the suggestion that the increase be introduced gradually.
She said officers should also be given the option to choose their retirement age, and those who opt to retire at 65 must pass health and psychometric assessments.
“The principle of extending the retirement age is to retain officers whose competencies are genuinely required by the government,” she added.
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