The Malaysia Ministry of Human Resources has confirmed it is studying a proposal to raise the mandatory retirement age in Malaysia from 60 to 65.
Mandatory or Minimum Retirement Age
Currently, the mandatory or compulsory retirement age for civil servants (appointed on or after Jan. 1, 2012) in Malaysia is 60. For private-sector employees, their retirement age is in accordance with the terms of their employment but subject to the minimum age of 60, pursuant to the Minimum Retirement Age Act 2012.
While it has been reported that the proposal is for raising the mandatory retirement age, it is likely that the proposal is for raising both the mandatory retirement age for civil servants and the minimum retirement age for private-sector workers from 60 to 65.
Comments
The proposal to raise the mandatory retirement age from 60 to 65 was recently made by Datuk Seri Azalina Othman Said, minister in the prime minister’s department (law and institutional reform). Speaking in her personal capacity, she said it would be a loss for individuals to retire at 60 when they were still energetic, productive, and capable of contributing to the workforce.
Malaysia’s human resources minister, Steven Sim Chee Keong, said the matter is being examined by a special committee led by the ministry’s deputy secretary-general (policy and international), Mohd Shaharin Umar.
“This committee will look at the suitability of raising the retirement age as there are pros and cons, along with certain challenges,” Sim said. He added that the ministry is engaging with relevant stakeholders from the public sector, employee groups, and employers to assess the feasibility and implications of the proposed change.
For private-sector employees, if implemented, this would be the first amendment to the Minimum Retirement Age Act 2012 in more than a decade, and it would align Malaysia with global trends in managing an aging population and workforce participation. On the other hand, the proposed amendment could reduce business flexibility, and businesses may face an increased challenge in managing workforce transitions or refreshing talent.
At this juncture, there is no specific timeline for the proposal, which remains under review and subject to further consultation and evaluation.
Foo Siew Li is an attorney with Skrine in Kuala Lumpur, Malaysia. Eunice Soo is an attorney with Skrine in Subang Jaya, Malaysia. © 2025 Skrine. All rights reserved. Reposted with permission of Lexology.
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