A proposal to raise the retirement age for Malaysian civil servants from 60 to 65 has drawn strong public opposition, with critics warning it would extend financial strain for low-income workers and limit job opportunities for young people.
Azalina, speaking on Tuesday, said it was time for the government to consider 65 as the new retirement age for civil servants, noting that Malaysian judges retire at 65 – five years earlier than their counterparts in some neighbouring countries. While she framed the comment as a personal opinion rather than official policy, she argued the move would allow older workers to remain productive and help boost their pension savings.
“Maybe the government should look at 65 years as the new retirement age because many [who reach] 60 are still young and the proportion of 60-year-olds in the population is growing,” Azalina said.
Malaysia, like many upper-middle-income nations, faces demographic headwinds. The share of citizens aged 65 and above is expected to nearly double from 8 per cent today to 14 per cent by 2043, according to projections by the United Nations and the World Bank.
At the same time, the working-age population has been shrinking since 2020, putting strain on tax revenues and pension systems.
