KOTA BHARU, Aug 21 — The government will study a proposal to increase the mandatory retirement age for civil servants to 65 during the 13th Malaysia Plan (MP13) period, said Public Service Director-General Tan Sri Wan Ahmad Dahlan Abdul Aziz.
“At this stage, I cannot provide any definitive outcome, as the study will only commence during the 13MP and is expected to conclude after the plan ends.
“However, JPA (Public Service Department) will begin initial assessment earlier, including benchmarking retirement ages in other countries,” he said.
Dahlan was speaking to the press after visiting Siti Rubiah Mohammad, the widow of the late Kamal Ariffin Mohamed, a retired officer from the Kota Bharu Municipal Council, under the Santuni Pesara outreach programme today.
He noted that several countries already have higher retirement ages than Malaysia, like Singapore at 62, and Scandinavian nations, where it can go up to 70. Similarly, Malaysia has certain schemes with extended retirement, including judges who retire at 66.
“This is not an unusual consideration for the government. However, such a policy shift will require a long-term approach and will not be implemented in isolation.
“PSD will engage with various stakeholders, including retirees’ associations, the Congress of Unions of Employees in the Public and Civil Services (Cuepacs), and youth associations, as they too will be affected by this policy,” Dahlan said.
Commenting on concerns that extending the retirement age may affect productivity, he stressed the need for a thorough and evidence-based study.
“We cannot draw premature conclusions. Some countries have successfully maintained productivity despite a higher retirement age,” Dahlan said.
On July 31, when tabling the 13MP, Prime Minister Datuk Seri Anwar Ibrahim announced that the retirement age policy would be reviewed as part of Malaysia’s transition toward becoming an ageing nation.
This is outlined in 13MP’s Ninth Strategic Focus Area, which emphasises social justice and equal opportunity for all Malaysians.
He noted that any decision must take into account various factors, including financial implications and the potential impact on employment opportunities for younger workers.
In May, Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said had proposed that the government consider raising the mandatory retirement age from 60 to 65.
She said it is a loss to the nation if individuals are forced to retire at 60 despite still being healthy, energetic, and able to contribute meaningfully to the workforce.
Currently, the mandatory retirement age for public sector employees in Malaysia is 60. This is also the minimum retirement age for private sector workers, as stipulated under the Minimum Retirement Age Act 2012.
