23rd May 2025 - 2 min read

The Ministry of Human Resources is in the process of evaluating whether the current retirement age of 60 should be extended to 65. This initiative, announced by Minister Steven Sim, is part of broader reforms intended to modernise Malaysia’s labour framework and bring it in line with international standards.
A committee led by Deputy Secretary-General for Policy and International Affairs, Mohd Shaharin Umar, has been tasked with examining the proposal, which falls within the ministry’s regulatory remit.
The review will involve consultation with key sectors, including public service bodies, employers, and employees, to assess the implications of the proposed change. According to Sim, the deliberations aim to balance potential benefits with the inherent challenges of such a policy shift. He emphasised that the Ministry is concurrently reviewing 28 labour laws, some of which are considered outdated. The objective is to streamline, harmonise, and where necessary, repeal or revise existing provisions to ensure legal frameworks remain relevant and effective.

Prime Minister Datuk Seri Anwar Ibrahim recently noted that the proposal to extend the retirement age was among several matters requiring careful deliberation. Separately, Minister in the Prime Minister’s Department for Law and Institutional Reform, Datuk Seri Azalina Othman Said, had advocated for a reassessment of the retirement threshold. Speaking independently, she argued that extending the working age would prevent the premature exit of skilled and capable individuals from the workforce.
Meanwhile, at the central zone ceremony for the 2025 Union Affairs Development Grant on 23 May, Sim announced a record allocation of RM10 million for the programme, an increase from RM5.8 million the previous year. This expanded funding is intended to enhance the development of trade unions across the country, with a particular focus on upskilling members in areas such as management and leadership.
Sim also noted that this year’s grant places new emphasis on digital transformation, encouraging trade unions to adopt modern technologies. Of the 1,049 grant applications received, 551 were approved, amounting to RM7.15 million. The central zone, comprising Selangor and the Federal Territory, accounted for 138 successful applications, receiving a total of RM2.1 million in support.
(Source: Bernama)
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