Photo: Malay Mail
Retirement is a very real and ongoing issue, with sustainability and sufficiency being some of the challenges retirees have to face.
The Malaysian Trade Union Congress (MTUC) recently suggested that for Budget 2020, a monthly cost of living allowance of RM 500 be introduced to private sector employees and that the mandatory retirement age be increased from 60 to 65 years.
According to Human Resources Minister M. Kula Segaran, the ministry will be looking to discuss the matter with the Finance Ministry before deciding on anything. MTUC general secretary J. Solomon said there are Malaysians who do not have sufficient income to sustain their life after retirement. The higher retirement age would serve to boost the savings of the Employees Provident Fund - a great help for those with lower incomes and for senior citizens. He added that their proposal is for the extension of retirement age and for EPF withdrawal at 55 to both be optional. “The country lacks workforce, there is no lack of job opportunities. We are taking in a lot of foreign workers because the country does not have sufficient labour force,” said Kula Segaran when asked whether the proposal might affect employment opportunities for the younger ones.
On the other hand, Youth and Sports Minister Syed Saddiq Abdul Rahman opposed the proposal, citing priority for young people to have jobs and for promotion based on merit instead of age. He added that there were 500, 000 unemployed youths in the country, with an unemployment rate of 10.7%. “Comparison with developed countries is not accurate. Japan’s youth unemployment rate is only 3.4%, Singapore 5.9% and Germany 6.2%,” he said. Netizens were divided over the proposal, with many standing behind Syed Saddiq’s opinion.
While we understand the concern for youths to get a job, retirees would also need something to keep them occupied and help them save up for old age. According to World Life Expectancy, we have an average lifespan of 75.3 years, a figure which will leave retirees with a good 15 years to fill up.
What are your thoughts?
By: Celestine Foo
