Retirement age policy to be reviewed for balanced labour market, says Minister

THE Human Resources Ministry (KESUMA) will study a balanced labour market framework before deciding on any revision to the minimum retirement age, said Minister Steven Sim.

Currently set at 60 under the Minimum Retirement Age Act 2012 (Act 753), the law does not prohibit employers from retaining staff beyond that age, Sim noted.

“In developing a long-term policy framework, KESUMA is evaluating several key factors, including increased life expectancy among Malaysians, the health and productivity of older workers, national labour demands, and the youth unemployment rate,” he said in a written parliamentary reply on Thursday.

He was responding to a question from Riduan Rubin (IND-Tenom), who sought clarification on the ministry’s long-term strategy to review the retirement age without increasing pressure on employment opportunities for the younger generation.

Sim stressed that his ministry was taking the policy implications seriously to avoid creating a double burden on the youth labour market, particularly among highly educated graduates.

“The main focus is to ensure balance – enabling experienced workers to continue contributing to national productivity while ensuring young people have access to employment that matches their qualifications,” he added. - August 22, 2025