Kuala lumpur: The government is set to explore a proposal to increase the mandatory retirement age for civil servants to 65 during the 13th Malaysia Plan (RMK-13) period, as announced by Director-General of Public Service (KPPA) Tan Sri Wan Ahmad Dahlan Abdul Aziz.
According to BERNAMA News Agency, the study concerning this proposal will commence during the 13MP and is expected to conclude after the plan ends. Wan Ahmad Dahlan emphasized that the Public Service Department (PSD) will begin initial assessments earlier, including benchmarking retirement ages in other countries. He cited examples like Singapore, where the retirement age is 62, and Scandinavian nations, where it can reach up to 70. Malaysia currently has certain schemes with extended retirement, including judges who retire at 66.
Wan Ahmad Dahlan asserted that this proposal is not an unusual consideration for the government, noting that any policy shift would require a long-term approach and would not be implemented in isolation. The PSD plans to engage with various stakeholders, such as retirees’ associations, the Congress of Unions of Employees in the Public and Civil Services (Cuepacs), and youth associations, since they will also be affected by this policy.
Addressing concerns about the potential impact on productivity, Wan Ahmad Dahlan stressed the necessity for a thorough and evidence-based study. He remarked that some countries have successfully maintained productivity despite having a higher retirement age.
On July 31, Prime Minister Datuk Seri Anwar Ibrahim announced, while tabling the 13MP, that the retirement age policy would be reviewed as part of Malaysia’s transition toward becoming an ageing nation. This is outlined in the 13MP’s Ninth Strategic Focus Area, which emphasizes social justice and equal opportunities for all Malaysians. The Prime Minister highlighted the importance of considering various factors, including financial implications and the potential impact on employment opportunities for younger workers.
In May 2025, Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said proposed that the government consider raising the mandatory retirement age from 60 to 65. She argued that it is a loss to the nation if individuals are forced to retire at 60 despite still being healthy, energetic, and capable of contributing meaningfully to the workforce.
Currently, the mandatory retirement age for public sector employees in Malaysia is 60, which is also the minimum retirement age for private sector workers, as stipulated under the Minimum Retirement Age Act 2012.