Will raising retirement age to 65 harm youth employment?

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Raising the Retirement Age to 65 Could Harm Youth Employment Opportunities in Malaysia

The Malaysian Youth Council has expressed strong opposition to the proposal to increase the retirement age to 65, asserting that such a policy is ill-suited for Malaysia's current labour market dynamics. The council argues that this change could significantly impede the employment prospects and developmental pathways for the nation's youth. This concern is rooted in historical precedent, where a previous increase in the retirement age from 55 to 60 in 2013 was associated with a substantial reduction in new job openings available for graduates and young job seekers.
Impact on Graduate Employment and Job Market Entry

Malaysia faces a considerable challenge in absorbing its annual cohort of over 300,000 graduates into the workforce, with many already struggling to secure permanent positions. The Malaysian Youth Council contends that extending the retirement age to 65 would further exacerbate this situation by potentially reducing the number of entry-level and mid-career opportunities available for younger individuals. This perspective highlights a perceived zero-sum dynamic where prolonged tenures of older workers might limit the creation of new roles or the advancement of younger employees.
Concerns Regarding Physical Capacity and Health Risks

Beyond the direct impact on job availability, the council questions the universal applicability of a higher retirement age, citing physical and health considerations. Referencing a 2021 World Health Organisation report, it is noted that a significant portion of individuals over 60 experience physical limitations and a heightened risk of chronic diseases. This suggests that not all older workers may be able to maintain productivity effectively at an advanced age, raising questions about the feasibility and fairness of mandating continued employment.
Public Sentiment and Alternative Proposals

Public opinion, as reflected in a Berita Harian online survey involving over 15,000 respondents, indicates widespread rejection of the proposal to raise the retirement age to 65. The survey results suggest a prevailing sentiment among the public to maintain or even lower the retirement age, with a majority favouring a retirement age of 55. This public sentiment underscores a disconnect between the proposed policy and the aspirations or perceived needs of a significant segment of the population, particularly concerning intergenerational equity in the job market.

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Will raising retirement age to 65 harm youth employment?

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