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13 September 2010

MEF's 'NO' TO BLANKET RISE IN RETIREMENT AGE

The Malay Mail
Submitted by Najiah
Wednesday, September 8th, 2010

PETALING JAYA: Malaysian employers will not agree to any government move to implement a blanket rise of the retirement age to 60 for the private sector.
Malaysian Employers Federation (MEF) executive director Shamsuddin Bardan told The Malay Mail that employers in the country face several concerns about those past the present retirement age – set at 55 for the private sector and 58 for the public sector.
“The MEF is not keen on a blanket rise on the current retirement age. We have concerns and it is not due to the cost factor but rather the workers' health and productivity."
Shamsuddin said when employees reach their mid-50s, health issues are bound to surface and will likely affect the performances of the workers.
“Employers also worry workers past 55 may not be able to contribute enough to their companies. This does not mean we do not encourage companies to employ staff who are past 55. We only disagree to a blanket rise of the retirement age.”
Shamsuddin said those beyond 55 who are performance-driven and can contribute to the company would definitely be considered for employment.
“Re-employing healthy and productive retirees have been the practice of many companies as this is a win-win situation for both employers and employees.”
The Congress of Unions of Employees in the Public and Civil Services (Cuepacs) yesterday urged the government to increase the retirement age for civil servants from 58 to 60.
Describing the proposal as an “overdue move”, Cuepacs president Omar Osman said the Malaysian government should follow its Southeast Asian counterparts like Brunei, Singapore, Indonesia and Thailand where retirement age was at least 60.
Omar’s call had come after the Malayan Commercial Banks Association recently agreed to increase the retirement age from 55 to 57 following recommendations from the National Union of Bank Employees.
In 2008, the government increased the retirement age of civil servants from 55 to 58.

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