Professor Datuk Norma Mansor, Director of the Social Wellbeing Research Centre, Universiti Malaya in The Star's recent article has commented on the unsustainability of keeping the retirement age at 60. She states that as the aged population grows, more individuals will become dependent on their already working children, and this, combined with the dependency of the 0 to teen age group, can create difficulties. Norma suggests that this situation could negatively impact productivity if the middle working group is stretched too thin.
She also highlights that several countries are already extending retirement ages to allow people to work longer and contribute more to tax revenues, thereby improving productivity and increasing individual and national savings. Regarding the proposal to raise Malaysia's retirement age, Norma advises against an immediate five-year leap, suggesting instead a gradual plan, perhaps with reviews every two years. She emphasises the need for proactive policies to address the ageing population. Finally, she notes that if the private sector is expected to be most affected by this change, they should plan ahead to avoid concerns about workforce replacement.
Read the article at:
https://www.thestar.com.my/business/business-news/2025/06/07/will-65-cut-it-as-the-new-60