From the New Straits Times (19 Apr 2008):
The private sector is not keen on extending the retirement age from 55 to 60 years.
Malaysian Employers Federation executive director Shamsuddin Bardan said the private sector preferred to adopt the present system where they offer employment to productive employees who retire to continue serving the company on contract basis.
“Many companies are already offering employment to productive employees who retire to continue work for a two-to three-year period on contract basis. The services of these retired employees are reviewed when their contracts end,” he said when commenting on the government’s move to extend the retirement age for civil servants from 56 to 60 years.
Countries such as Singapore, India and the Philippines have extended the retirement age from 60 to 65.
Shamsuddin said employers were now more keen on employing retired staff because of the Employees Provident Fund’s new offer, from February, of halving monthly contribution by workers and employers after 55 years of age.
Shamsuddin said the problem with the blanket extension in retirement age was that the employers would have to continue giving employment to the sick, unproductive workers and problematic employees.
He said the private sector felt that the best way was to give recognition to hard working and productive staff by offering them work on contract basis after retirement.