Eradicate poverty in old age through employment

WITH 7% of Malaysians having reached 65 in 2020, we are now an “aging society” as defined by the Organisation for Economic Cooperation and Development. And we will be an “aged society” post 2044 when the percentage crosses 14%.

Sadly, despite kudos to the recent passing of the Employment (Amendment) Bill 2021 that has uplifted the contribution of women in society, there was no mention of older persons. Are they a forgotten group?

Contrary to the rhetoric that increased employment among older workers negatively affects the prospects of younger workers, engaging more Malaysians aged 50 to 64 actively in the labour market would help to address talent shortages, which the country is indeed facing as noted by the World Bank.

In Sweden, empirical evidence suggests that engaging an older workforce doesn’t mean a loss in productivity. On the contrary, it leads to improvements. In the United Kingdom and Kenya, a 2017 study found that older persons contributed readily to an entrepreneurial ecosystem while embracing new technologies.

In terms of working together to serve the common purpose of equality and equity for all, older workers are often crucial sources of history and wisdom as well as caretakers of culture, social traditions, rare information and skills, which obviously and critically complement the millennials.

A United Nations (UN) study showed that older workers in rural areas often displayed expertise in farming practices to handle environmental degradation, vital in sustainable development for plantation companies.

Other studies have suggested that older persons can make significant contributions to the economy beyond their retirement age. In the UK, it was found that older people’s higher tax contributions and maintenance of their consumption patterns far outweighed the government’s expenditure on them via pensions, welfare and healthcare.

For guidance in managing the issue, Malaysia should look to “aged” Singapore where 25% of its population is forecast to be 65 or older by 2030, according to Asian Development Bank statistics.

In Singapore, employers are not allowed to dismiss any employee based on age. Instead, they must offer to re-employ eligible workers who turn 62 (retirement age in Singapore) and up to age 67. There is a tripartite guideline that employers must always refer to on the rehiring of workers who are due to retire. And there are also options for re-employment by another employer if their current one is unable to rehire them.

According to the International Labour Organisation, eradicating poverty in old age requires the will and courage of all concerned in providing social protection and benefits appropriately.

DR THANASEELEN RAJASAKRAN

Universiti Tunku Abdul Rahman, Kajang