Malaysia is set to review its mandatory retirement age as part of comprehensive efforts to prepare for its transition into an ageing nation. This significant initiative is outlined in the 13th Malaysia Plan (13MP) Or Rancangan Malaysia Ke-13 (RMK13), which details strategies for adapting to demographic shifts.

Boosting Participation of Older Workers

The 13MP specifically proposes a review of the Minimum Retirement Age Act 2012. This review aims to introduce new laws concerning re-employment after individuals reach the minimum retirement age, with the broader goal of increasing the participation of older workers within the labour market. Furthermore, the report indicates that a proposal to raise the mandatory retirement age for civil servants, according to their service scheme, will be carefully studied. This review would enable a revision of the Pensions Act 1980 to be implemented.

Prioritising Long-Term Care for Seniors

During the tabling of the RMK13 in Parliament on Thursday, Prime Minister Datuk Seri Anwar Ibrahim highlighted a key priority developing a more efficient and sustainable long-term care, or LTC, service ecosystem. This commitment includes expanding access to quality LTC services that are both affordable and compassionate, ensuring that the needs of the elderly are met with dignity and care.

New Legislation for Care Services

To ensure consistency in care-related policies and regulations, the government will introduce new legislation. Additionally, a dedicated regulatory body will be established to provide comprehensive oversight of the entire care ecosystem, promoting standardisation and quality across services. It is important to note that this legislation is currently planned and not yet in force.

Preparing for a Significant Demographic Shift

Malaysia officially became an ageing nation in 2021 and is projected to transition into an aged nation as early as 2043. Prime Minister Anwar Ibrahim acknowledged that this demographic shift will necessitate a greater financial commitment to ensure no citizen is left behind. The government plans to intensify preparations by strengthening vital sectors, including economic and fiscal management, talent development, education, social protection, and healthcare, with a particular focus on enhancing LTC services.

Enhancing Social Protection and Support Programmes

As part of these broader efforts, a more inclusive social protection system will be introduced. This will be complemented by the expansion of support programmes and services specifically tailored to meet the diverse needs of the elderly population. These measures are designed to ensure Malaysia is holistically prepared for the wide-ranging implications of its evolving demographic landscape, as highlighted in the 13MP report.

Stay tuned for more coverage as we continue to explore how the 13th Malaysia Plan will influence policies, prices, and your personal finances in the years to come.

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• 13MP
• Retirement Age