Kulasegaran: No plans to increase retirement age to 65

KUALA LUMPUR: The government has no plans to change the retirement age of 60 despite proposals to increase it by another five years, says Human Resources Minister M. Kulasegaran (pic).

He told the Dewan Rakyat that the proposal to push it to 65 was based on a suggestion from the Malaysian Trade Union Congress (MTUC).

Kulasegaran said that the Minimum Retirement Age Act 2012 states that the minimum retirement age of a worker is at 60, and added that it came into effect on July 1,2013.

"Therefore, there is no need at the moment to increase the retirement age to 65 as the Act has set the minimum retirement age for a worker," he told Rusnah Aluai (PH-Tangga Batu) during Question Time.

Rusnah had asked the Ministry whether it had any intention to increase the retirement age to 65 years old.

Kulasegaran said that various factors need to be considered if the government increases the retirement age.

"Such changes will affect job opportunities, especially for youth, when the youth unemployment rate remains at 10.9%," said Kulasegaran.

He added that productivity could also be affected due to old age and the physical capabilities of a worker.

"These factors can contribute to the quality and the management spending of an organisation," he said.