Extending retirement age should not affect the youth workforce
MCA HQ, 19 Jun – MCA is generally supportive towards the extension of the retirement age to 60 years from the previous 55 due to the increase in the lifespan of Malaysians but is of the view that it should not affect the younger generation.
As explained by party President, Datuk Seri Dr Chua Soi Lek, at a press conference today after chairing the Central Committee meeting, he clarified that the extension of the retirement age “should not affect the prospects of youths entering the workforce, or their prospects for promotionsby virtue of the older staff being retained .”
Soi Lek also said that labour laws need to be reviewed and that a mechanism for employers to monitor whether certain workers can continue to work even after the compulsory retirement age. “We feel that the Malaysian labour law needs to be relooked at to allow better flexibility for employers so that they have a leeway to decide on whether to extend certain workers or not,” he said.
EPF withdrawal at 55
In line with the Minimum Retirement Age Bill being passed whereby the retirement age has been extended to 60 years, Soi Lek also explained that the party’s stand i.e. all employees should be given the option of withdrawing their EPF at the age of 55 and that those who do not wish to do so may wait until they are 60.
The party chief also said that MCA will be bringing up the party’s stand through various channels, explaining that he will be bringing it up during the National Economic Council (NEC) while MCA ministers and deputy ministers will raise it up in the Cabinet meeting.
At this juncture, Soi Lek also brought attention to the party’s stand against unemployment insurance scheme at the NEC, and Prime Minister immediately directed that the proposed insurance scheme be shelved.
No new initiatives for now
Soi Lek also said that MCA is against any forms of new initiative by the Ministry of Human Resources for the time being as its effects and costs need to be monitored first in view that the Minimum Wage Bill being passed along with the Minimum Retirement Age Bill. “Any new initiative that will add cost, we will definitely object, and this includes the pension scheme for the private sector and the insurance scheme for the unemployed,” said Soi Lek, adding that “all new initiatives must run its full course first so that any impact may be monitored.”