Koon Yew Yin's Blog
Why the retirement age should not be raised from 60 to 65 - Koon Yew Yin
Koon Yew Yin
Publish date: Thu, 27 Apr 2023, 10:26 AM
Koon Yew Yin
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An official blog in i3investor to publish sharing by Mr. Koon Yew Yin.
All materials published here are prepared by Mr. Koon Yew Yin
All materials published here are prepared by Mr. Koon Yew Yin
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.
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Discussions
1 person likes this. Showing 22 of 22 comments
retirement age can be raised for some to make sure that the old people's mind are still fresh. in your case, you should still be working instead of being retired cos your mind is not fresh at all.
2023-04-28 10:02
The real reason for the call to raise retirement age to 65 is HOUSING LOANS.
Many are stuck with humangous loans and they have to let their children to continue payment, else the property would be confiscated for auction.
The call is a selfish one!
2023-04-28 10:48
Nowadays, those above 35 find it difficult to get a permanent job. What is the point of raising it if no one is willing to hire? Job ads specifically limit hiring age. The call is a selfish one just to finance their loans.
2023-04-28 10:51
Many government systems are outdated, slow and inconsistent. This might be the issue causing the need of many civil servants to complete some simple task in an efficient way...If government can make more initiatives to implement more IT solutions to their systems, fresh grads would also have more employment opportunities.
2023-04-28 11:43
When a man is cultivating his farm, self-employed or operating his factory then the retirement has not much meaning to him. Even his age has exceeded 60 or 65, he would be more than willing to continue to take care of his business even though his children are already chipped in before their father pass on.
More people under the employment are affected by the change of retirement age. Some are tired of their colleagues after years in the offices/factories and some are experiencing decline of health before, so they prefer no extension of retirement age. They have lesser influence from the unsettled loans with banks. This is one of the groups.
Another group consist of people who are appealing to the employer to extend gain and again so they can continue to work. Most likely they still enjoy their workloads with their experiences gathered all along their career paths. This group of employees are supposedly still healthy and alert else the employer will not agree to their extension of work contracts.
However, biblically the word "retirement" does not appear in the Hebrew vocabulary. In the Old Testament, the Creator created the human being to live a life that reaching the fulfilment, no laziness, no chicken out half way through the purpose of your life and he/she should be productive and died as a very old man/women like Abraham/Isaac/Rebecca/Jacob/Rebecca/Moses.
It does not mean one actually has to work and work until he/she died. It merely mean that one should continue to live as a productive person, contributing to the family/society and the economy.
2023-04-28 12:35
France is burning every few other months. The protesters were brough to the streets and violence occurred when the French President announced that the retirement /pension age is to be increased from 62 to 64 . Why the increase of the pension age?
It has to be related to the coffer/treasury of the country.
Imagine if you are 61 year old now. You have already planning your holiday trips that will take place in 12 months time but that plan was thwarted by this announcement/enactment.
The government that has lesser and lesser of money is on the verge of bankruptcy, will need to delay/postpone the payment of pension funds to those retired workers/government staff.
Anyway, Europe is declining and France is one of them.
2023-04-28 12:49
good article from uncle KYY. Stay in this track and stop commenting on stock because you have bad advisors in this area..
2023-04-28 18:57
change gomen pension to private EPF retirement to be fair to increase EPF coffers. why always bully poor citizens in private sector?
2023-04-28 19:48
Malaysia no hope, we already gave chance n hope, but disappointing keep going on after change leadership. We changed from normal taste to LGBT taste, but taste keep on same taste, sometimes sour with increasing of food .
2023-04-28 22:34
*Only For Academic Purposes. The root cause why majority does not have enough to retire? KWSP is the biggest money lender in the Bond market to Federal Government, GLC, GLIC and private companies. Ketua Audit Negara 2021 reports that Federal Government borrowed from Pensioners of KWAP, Workers of KWSP, Depositors in Banks, Savers un Insurance Companies and investors in Unit Trust RM1300 Billion. But only RM190 Billion can be found in its assets. Can any one with common sense tell us what happens when a Government or a Company liabilities is greater than its assets and what will come of KWSP and etc as money lender?
2023-05-01 14:32
ya leh why need so many civil servant, and not good with service also like the public owe them few million muka busuk
2023-05-02 11:58
Kesian fresh grad takde kerja if retirement age naik ke 65. Orang tua tak kasi fresh grad chan
2023-06-01 16:47
Private sector x bagi peluang untuk pekerja yang berumur 40 ke atas kecuali yang mempunyai kabel anti karat. Syor ini tidak akan diberi perhatian.
2023-06-01 16:59
Retirement age should reduce to 55 to give more fresh grads jobs
Old ppl already make money
Give young ppl chance to make money
2023-06-01 17:45
Retirement age raised to 65 is only good for civil servants . Nothing good for private sectors employees if they retired early and unable to cash out their savings from EPF.
2023-06-01 20:58
it was a mistake to raise it to 60! now see so many youngsters no jobs! all the old buggers hogging their jobs depriving youngsters the opportunity to gain income and working experience.
2023-12-04 17:04
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Kesian fresh grad takde kerja if retirement age naik ke 65
2023-04-27 21:07