The debate over a recent call to extend the retirement age of employees in Malaysia to 65 remains heated, with proponents suggesting there is little choice in the matter given the average retiree’s paltry savings and greater life expectancy and naysayers side-stepping the issue. Objective voices point to the constraints, particularly Putrajaya’s inability to shoulder the additional expenses for the huge public sector.
Last week, the Malaysian Association of Social Protection Contributors’ Advisory Services (SPCAAM) urged the government to raise the retirement age from 60 to 65 for employees in both the public and private sectors who choose to continue working, to ease the economic strain on both the individual and the nation, although mainly the former.
The Malaysian Employers Federation argued that extending the retirement age to 65 could heighten the rate of youth unemployment and lead to a decrease in human capital in the future.
SPCAAM subsequently said “certain business groups” failed to address the core of the issue, being the social and economic plight of the elderly. When contacted by The Edge, the Ministry of Human Resources declined to comment on the matter.
Advocating for a further extension of the retirement age is not new. For civil servants, the retirement age was raised from 55 to 56 in 2001 before being increased to 58 in 2008 and 60 in 2012, unleashing considerable consternation even then.
I just Google “How many civil servant per capita has Malaysia?” This is the answer “Malaysia has 1.7 million civil servants for our population of 36.5 million. This works out to one civil servant for every 20 citizens. Malaysia has the most civil servants per capita in the world. Almost all the civil servants are ethnic Malays”.
I Google the same questions for Singapore, Taiwan and South Korea. The followings are the answers”
Singapore has 1 civil servant for 66.8 people.
Taiwan has 1 civil servant for 65 people.
South Korea has 1 civil servant for 45 people.
Why do we have so many more civil servants per capita than Singapore, Taiwan and South Korea?
Are our civil servants lazy and slow in doing work?
In 1970 our GDP per capita was about the same as Singapore, Taiwan and South Korea. Currently the GDP per capita of Singapore is 3.5 times, Taiwan is 3 times and South Korea is 2.5 times ours respectively.
All these 3 countries do not even have timber to build their houses, yet they are classified as Developed Nations.
Not so long ago, Malaysia was the largest producer of tin, rubber and palm oil. Moreover we are the 16th biggest oil and gas producer in the world. Yet, we could not be classified as a Developed Nation.
In fact, 1 computer can work faster than 10 people.
The total cost to maintain 1.7 million civil servants is Rm 41 billion per year. On the top of this, the Government has to make provision for their pension when they retire. The chart below shows Government pension costs:
Why should Malaysia have the most civil servant per capita in the world? To reduce the number of civil servants is a very sensitive issue especially before the last general election. Now the Unity Government is formed with Dato Sri Anwar Ibrahim as Prime Minister. Based on his courage to implement his anti-corruption policy, I think he will not raise the retirement age from 60 to 65 and will not employ people to replace those retirees. As a result, he can reduce the number of civil servants to reduce cost and improve our economy.
Created by Koon Yew Yin | Sep 19, 2023
After I saw RHB recommendation to buy Kerjaya Prosek Group yesterday, I studied all the top 12 property developers and tabled them below for comparison. Kerjaya Prosek Group is ranked 6.
Created by Koon Yew Yin | Sep 08, 2023
KP Property 4 quarters EPS is 23.6 sen and it is selling cheaper than Kerjaya Prospek Group with 4 quarters EPS of 9.39 sen.
Created by Koon Yew Yin | Aug 27, 2023
Non Malays should not be afraid of not getting university education.
Created by Koon Yew Yin | Aug 17, 2023