
Retirement age hike won't harm young jobseekers, says World Bank economist
KUALA LUMPUR : Raising the retirement age in Malaysia will not reduce job opportunities for young people, World Bank senior economist for social protection and jobs in the East Asia and Pacific region, Matthew Dornan said today.
Speaking at EPF's International Social Well-being Conference here today, Dornan said the belief that older workers would take away jobs from younger ones was a common misconception.
'There isn't a fixed number of jobs in the economy,' he said during his keynote speech titled 'Labour and longevity: Responding to the challenge of an ageing population.'
He said older workers who stayed employed continued to spend money, which helped support the economy and create more jobs, including for younger workers.
Dornan said studies showed that this trend was also true in Malaysia, except in sectors such as the civil service where employment might be capped.
He said many countries had raised their retirement age as the population aged, adding that Malaysia did the same when it gradually increased the minimum retirement age from 55 to 60.
Dornan said any further increase should be gradual and fair, possibly with different rules for different age groups, to allow time for adjustment and reduce public backlash.
He also suggested linking the retirement age to life expectancy, as done in some developed countries, to prevent it becoming politicised.
Yesterday, EPF CEO Ahmad Zulqarnain Onn said that life expectancy in Malaysia had increased from 54 years in the 1950s to 75 today, and was projected to hit 81 by 2050.
Dornan warned that allowing early access to pension funds might lead to inadequate savings in old age, as some might spend the money too early.
AdChoices
ADVERTISING
He added that while retirement policies mainly affected formal workers, many informal workers in Malaysia continued working beyond 60 out of necessity.
Last month, law and institutional reform minister Azalina Othman Said proposed that the government study extending the retirement age to 65, noting that many Malaysians remained active and capable well into their 60s.
In 2014, Malaysia raised the retirement age to 60 for both public and private sectors, up from 58 and 55 respectively, to promote financial security and active ageing.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Rakyat Post
20 minutes ago
- Rakyat Post
RM580K Property, RM1,500 Left To Live: The Malaysian Homeownership Reality Check
Subscribe to our FREE A viral social media post about a Malaysian worker earning RM5,500 monthly purchasing a RM580,000 property has ignited fierce discussions about financial literacy and homeownership affordability across local online communities. The controversy began when a concerned individual shared his friend's story via the Facebook page 'Boom Go Employee,' detailing his friend's recent property purchase—a 900-square-foot, 3-bedroom apartment in Malaysia. What caught everyone's attention wasn't just the purchase itself, but the stark financial reality behind it. According to the post, here's how the friend's monthly finances break down: Net income: RM5,500 Car loan: RM700 PTPTN (education loan): RM180 New property monthly payment: RM2,600 The real estate agent calculated the Debt Service Ratio (DSR) at 63.27% and declared it 'qualified' for bank approval. The friend enthusiastically agreed to proceed with the purchase. Why RM2,600 Monthly Payment Becomes RM3,000+ But the original poster wasn't convinced. He broke down the hidden costs that many first-time buyers overlook: Maintenance fees: RM297/month Sinking fund: RM29.70/month Utilities: RM150-200/month Internet: RM100/month Annual property tax: Several hundred ringgit After accounting for all expenses, the friend would have approximately RM1,500 left monthly for food, daily expenses, social activities, and savings. The poster wondered how his friend would manage financially, especially considering the costs of renovation and unexpected expenses. He said the agent mentioned he could withdraw from his EPF Account 2 for renovation. So basically, he has no savings for renovation except for the RM20,000 he's saved up. The poster, who owns an 847-square-foot property himself, shared his own maintenance fee bill, showing charges exceeding RM3,000 for accumulated fees and late payment interest, highlighting the often-overlooked ongoing costs of property ownership. Public Reaction: Divided Opinions The post has generated polarising responses from netizens: Team 'Too Risky': 'Salary RM5.5K buying RM580K property – I'm speechless' '35 years is a long time; many things can happen to your career' 'Don't bite off more than you can chew' Team 'It's Doable': 'No problem with utilities and rent – you'd have to pay those anyway unless you never buy property' 'Better to buy at RM2,500 monthly and rent out 2 rooms for RM1,300 each – at least the property is yours' 'His parents might help cover costs if needed' Beyond Individual Choice: The Market Forces at Play The case highlights several critical issues in Malaysia's property market: Aggressive Sales Tactics : Real estate agents focusing solely on DSR approval without considering total living costs Financial Literacy Gap : Young buyers not fully understanding the true cost of homeownership Social Pressure : The cultural push toward property ownership regardless of financial readiness Hidden Costs : Maintenance fees, sinking funds, and other expenses that can add hundreds of ringgit monthly The poster's analysis reveals that the friend's actual monthly property-related expenses could reach RM3,176 – significantly higher than the RM2,600 mortgage payment alone. This doesn't include renovation costs, which could easily exceed the friend's RM20,000 savings for basic kitchen cabinets and wardrobes. 'The agent isn't wrong – they're just doing their job,' the poster concluded. The DSR calculation passes, and the bank approved it. But if you face financial problems later, don't blame others – blame yourself for not calculating properly. The Waiting Game: A Cautionary Tale for Malaysian Homebuyers While homeownership remains a significant milestone for many Malaysians, this case serves as a stark reminder that qualifying for a loan and being able to afford a property comfortably are two very different things. As property prices continue rising faster than salaries, the debate over what constitutes responsible borrowing versus financial overreach shows no signs of cooling down. The friend's property is expected to be ready next year. Whether his optimism about salary increases and financial management proves justified remains to be seen – but his story has already become a cautionary tale echoing across Malaysian social media. READ MOR E: READ MORE : READ MORE : Share your thoughts with us via TRP's . Get more stories like this to your inbox by signing up for our newsletter.


Daily Express
an hour ago
- Daily Express
Over 5,500 set to join Malaysia-China Friendship Run in KK
Published on: Friday, July 25, 2025 Published on: Fri, Jul 25, 2025 Text Size: KOTA KINABALU: Over 5,500 participants are set to take part in the 'Jom! Malaysia-China Friendship Run 2025' at Padang Merdeka here on Sunday (July 27), with the event scheduled to begin at 6am. Malaysia-China Friendship Association Sabah President Oh Ei Sun said the warm-up will begin shortly after guests arrive, followed by a 6.30am flag-off and a lucky draw session upon completion of the run at 8.30am. Participants will cover a 7-kilometre route along Likas Bay, turning back at the Bay 21 roundabout before finishing back at Padang Merdeka, with Chief Minister Datuk Seri Hajiji Noor officiating. Among the notable guests expected are Federal Youth and Sports Minister Hannah Yeoh, Federal Deputy Plantation and Commodities Minister Datuk Chan Foong Hin, Tourism, Culture and Environment Minister Datuk Seri Christina Liew, Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe, Chinese Consul General Zhu Xinglong, Assistant Finance Minister Datuk Tan Lee Fatt, and Deputy Speaker Datuk Richard Yong. Oh extended his gratitude to the State Government, federal ministries, supporting agencies and over 30 sponsors, including platinum sponsor Skechers, for their strong backing. Skechers has also announced the addition of 500 mystery gift boxes worth RM100–RM200 each, raising its total contribution to over RM300,000, including prizes and participant kits. The 350 lucky draw prizes include a year's supply of shoes worth RM5,508 and RM54,500 in cash prizes, with the first 500 finishers eligible to win a bonus mystery box. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia


Malaysiakini
2 hours ago
- Malaysiakini
Don't insult rakyat by saying PM trying to buy votes
MP SPEAKS | It seems to me that some people are determined to find fault with whatever initiatives that Prime Minister Anwar Ibrahim and the government carry out for the benefit of the people. This is clear after the several major initiatives including the one-off RM100 grant under the Rahmah Necessities Aid (Sara) programme, the delay in toll hikes for 10 highways, and the lower RON95 petrol price subsidy at RM1.99 per litre. We have stable growth, inflation, low unemployment rates, high foreign investment volume, and good EPF rates. We are bouncing back from Covid-19 and the economic mismanagement of previous administrations, such as the recession-ridden days of Muhyiddin Yassin. Just imagine my annoyance at reading false claims that the latest initiatives are ill-advised handouts and wastage designed to buy the people's votes at the next election. I wonder if the critics would be happier if the government did not try to help the people at all! Despite the good figures, these are difficult and unpredictable times with international tariffs and sales and services tax (SST), electricity tariffs also making possible impacts on the economy. There are difficult decisions that have to be made, because of the corruption and economic mismanagement of the past. So, when the government tries to give the people a buffer, why complain? Elite entitlement We are trying and have succeeded in combating the fiscal deficit, improving governance, and restoring investor confidence over the past two and a half years. One of the main initiatives is the expansion of the Sara programme, which will benefit 22 million citizens aged 18 and above, with an allocation of RM2bil. This is across the board and eligible Malaysians can redeem the one-off RM100 Sara aid credited to their MyKad at over 4,000 participating outlets nationwide to purchase essential goods, such as rice and eggs. So, the critics are upset, saying that this is nothing. To me it reflects the privilege and entitlement of the elite to fail to recognise that these contributions will mean something, especially to those in the B40. Let's not forget that aside from the expanded Sara programme, the government is also doubling the allocation for the Rahmah Sales programme from RM300mil to RM600 mil. Then how about the reduced RON95 petrol price, from the current rate to RM1.99 per litre, with the mechanism to be detailed by the Finance Ministry. Surely this will help us all, by easing the burden on the people and increasing the cash flow in the economy. Reducing fuel prices shows the government is committed to inducing growth and restoring some imbalances, particularly as in the long term the strategy is to have targeted subsidies on fuel prices. Greater economic programme All this is part of a greater economic programme with the 13th Malaysia Plan scheduled to be tabled on July 31, followed by Budget 2026 in October. So, we know that the opposition wants to disrupt the progress, but we don't mind, we are committed to peaceful assembly for rallies like 'Turun Anwar'. We know that some columnists and cybertroopers are being paid to attack our initiatives and confuse the people, but we are committed to freedom of speech. We know that some try to divide us on the basis of race and religion, but we remain committed to a progressive and prosperous Malaysia for all. R YUNESWARAN is the Segamat MP. The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.