MALAYSIA may need to readjust its mandatory retirement age as the nation’s transitions to become an ageing society this year.
In a report by World Bank Group entitled A Silver Lining: Productive and Inclusive Aging for Malaysia, the international financial institution said the adjustment was inevitable due to increasing life expectancy.
“We also need to help ageing Malaysians by broadening Employees Provident Fund’s (EPF) coverage to the self-employed and informal workers, improving quality of aged care homes and enhancing opportunities for training and lifelong learning,” it said.
Data shows that as of this year, more than 7% of Malaysia’s population will be aged 65 and above which means the nation will be regarded as an ageing society.
The numbers is set to double to 14% by 2044 and reach 20% by 2056.
Meanwhile, the ratio of the number of people aged 65 and above over those of working age is also projected to rise, raising old-age dependency in households.
Speaking after launching the World Bank report, Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed said the Government will need to formulate an inclusive aged care system to foster productivity, protect incomes and build a healthier society.
“Such policy will help Malaysia to reap benefits from social-economic dividends as the nation transition to become an ageing society,” said the Jeli MP.
He added that like most high-income nations, longer working lives will require gradual adjustments to the age when most Malaysians retire.
“In parallel, policies are needed to foster workers’ productive employment – such as enhanced opportunities for training and lifelong learning.
“Such policies will allow Malaysians to work longer, be healthier, with less physically demanding occupations, and with more digitally-enabled work places,” said Mustapa.
Touching on the matter, World Bank Group said the Malaysian Government has the opportunity to formulate policies to help its elderly citizens to get better protection and age with dignity.
“With that, the provision of minimum income protection for older Malaysians will require further improvements in the coverage and adequacy of social insurance schemes.
“Plus, a broadly targeted tax-financed social pension may also be required to comprehensively cover the ageing population,” said its country manager Firas Raad. – Nov, 24, 2020.
