Selangor Journal
Participants listen to a lecture during the Selangor Youth TVET Bootcamp programme’s closing ceremony at the Selangor Technical Skills Development Centre’s Kuala Selangor campus, on November 24, 2024. — Picture by NUR ADIBAH AHMAD IZAM/MEDIA SELANGOR

Protect youths too, govt urged amid proposal to raise retirement age

By Yasmin Ramlan

SHAH ALAM, Jan 17 — Malaysian youths have expressed their concerns that raising the retirement age in favour of the older generations could limit job opportunities for fresh graduates and create unfair competition in the job market.

Instead, they urged the government to implement balanced policies that support both age groups, advocating for initiatives like subsidised hiring and graduate training to ensure a smoother generational transition in the workforce.

This comes after a recent proposal by a World Bank economist suggesting that Malaysia increase its retirement age of 60, or implement a flexible retirement age to bring in more seniors and elderly individuals into the workforce.

Youth advocate Muhammad Hisyamuddin Sazali said that industries with slow turnover could face even greater challenges in employing fresh graduates if the retirement age is increased.

“The government and private sector must introduce measures including subsidised hiring programmes, structured graduate training, and mentorship initiatives, to ensure fresh graduates can enter the job market while benefiting from experienced professionals’ guidance,” he told Selangor Journal.

During the Malaysia Economic Forum last week, World Bank senior economist Shakira Teh Sharifuddin emphasised the importance of increasing workforce inclusion by integrating more women and older generations, highlighting the need to value the skills and experiences of older workers while addressing age discrimination.

The Tengku Permaisuri of Selangor Tengku Permaisuri Norashikin poses for a wefie with Universiti Teknologi Mara graduates during the institution’s 99th convocation in Shah Alam on September 2, 2024. — Picture by NUR ADIBAH AHMAD IZAM/MEDIA SELANGOR

Long-term economic risks

However, Malaysian Institute of Economic Research executive director Anthony Dass cautioned that over-prioritising older workers may hinder productivity, raise youth unemployment, and strain pensions, posing long-term economic risks.

He suggested implementing phased retirement, youth subsidies, and targeted upskilling as key measures to sustain long-term economic stability.

“An overemphasis on retaining older workers may lead to slower adoption of innovative technologies and methods, as older employees may lack familiarity with emerging tools,” he said.

Citing Japan as an example — where older workers dominate the workforce — Dass noted that its economy has experienced slower productivity growth despite technological advancements, largely due to the lower participation of digitally skilled younger workers.

Balancing the inclusion of older workers with opportunities for youth requires phased retirement policies, which would gradually transition older employees into part-time or mentoring roles, thereby freeing up positions for younger talent.

As for youth-focused policies, he suggested implementing quotas or subsidies to ensure graduates have access to entry-level roles, similar to Singapore’s Career Starter Programme.

Dass also stressed the need for upskilling initiatives that prepare both younger and older generations for emerging industries, ensuring these efforts align with the economic priorities of the 12th Malaysia Plan.

“By addressing these risks proactively, Malaysia can foster a balanced workforce while ensuring long-term economic stability,” he said.

While acknowledging that integrating more women and older individuals into Malaysia’s workforce could boost economic growth, address labor shortages, and promote inclusivity, Dass emphasised the need for strategic integration and effective initiatives to ensure equitable opportunities and balanced development across all demographics.

Some of the graduates of the 23rd Selangor International Islamic University College (Kuis) Convocation, at the Kuis Convocation Centre in Kajang, on December 1, 2021. — Picture by FIKRI YUSOF/SELANGORKINI

Limiting job opportunities

Former Universiti Malaysia Sabah student representative president Jeeva Cassandra Abdul Mumin fears that increasing the retirement age may limit job opportunities for fresh graduates, as it creates unfair competition.

“Efforts to increase workforce inclusion by involving more women can have a positive impact on the economy through increased productivity and diversity in the job market.

“However, I disagree with raising the retirement age as it could affect the opportunities for fresh graduates,” she said.

The 25-year-old urged the government to place greater trust in fresh graduates, warning that any move to retain older workers for longer could discourage young talents and push them away from the local job market.

“When experienced workers remain in the workforce longer, employers may be more inclined to choose them over fresh graduates who have less experience. This can lead to an imbalanced competition in sectors that already have limited job opportunities.

“The government needs to trust the capabilities of fresh graduates, as they have been holistically trained to meet the current industry demands,” she said, noting that today’s graduates are equipped with knowledge, skills, and the innovation needed for the fast-changing job market.

Jeeva believes that increasing workforce inclusion across all demographics can create opportunities for collaboration between experienced professionals and fresh graduates.

However, she cautioned that without clear policies to balance the needs of both groups, competition could emerge, especially in sectors with slow or limited economic growth.

As such, Jeeva urged youth leaders to advocate for policies that promote workforce diversity while protecting opportunities for young graduates.

Meanwhile, Hisyamuddin, himself a former student representative president, urged the promotion of balanced policies, including entrepreneurship programmes, flexible job creation, and hiring quotas to enhance workforce diversity and support young job seekers.

Like Jeeva, the 23-year-old former Universiti Malaysia Terengganu student similarly proposed initiatives benefiting all age groups.

On January 15, state executive councillor for women empowerment and social welfare Anfaal Saari said the Selangor government will launch a Diversity, Equity, and Inclusion framework in collaboration with the private sector, with the goal of promoting gender equality in hiring practices.

She said the collaboration with the private sectors aims to significantly contribute to the national objective of increasing female labour force participation from 53 per cent to 60 per cent by 2030.

Anfaal added that the state government launched the Selangor Silver Workforce Employment Platform last year, while plans are in place to introduce a Senior Citizen Policy, which is currently being researched.

Menteri Besar Dato’ Seri Amirudin Shari greets #KitaSelangor East Coast Zone Graduates Roadshow attendees at Universiti Malaysia Pahang Al-Sultan Abdullah on December 21, 2024. — Picture by FIKRI YUSOF/MEDIA SELANGOR

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