Malaysia will review its mandatory retirement age as the country moves closer to becoming an aged nation, Prime Minister Anwar Ibrahim announced during the tabling of the 13th Malaysia Plan.
The discussion comes amid growing calls to extend the retirement age, including a recent proposal by Law and Institutional Reform Minister Azalina Othman Said. In May, she suggested raising the retirement age to 65, noting that many retirees remain healthy and capable well into their 60s.
Malaysia last revised the retirement age in 2014, increasing it to 60 for both public and private sector employees—from the previous limits of 58 and 55, respectively. The aim was to support financial stability among older adults and encourage active, healthy ageing.
Anwar emphasized that any decision to raise the retirement age would require thorough evaluation.
According to the Department of Statistics, Malaysia may reach “aged nation” status earlier than expected, with projections indicating that 17% of the population will be aged 60 and above by 2040. As of last year, this demographic made up 11.6%—or 3.9 million—of the country’s total population of 34.1 million.
