Seputeh MP YB Teresa Kok is definitely out of line as quoted in the article ' Retirement Bill will deprive young of jobs '. First of all, the Bill to be tabled in the Dewan Rakyat to raise the retirement age to 60 years is for the private sector and not the public sector as she claimed in paragraph 1 line 2 of the article.

Young or aged workers need to feed their families, both have their own financial commitment, one not more important than the other.

Malaysia has an unemployment rate of 3.4% which according to ILO standards, below 4% is considered full employment. Malaysia has an acute shortage of labour and to fill this gap we have 2.3 millions foreign workers (both documented and undocumented). Which means of about 10 million labour force in the private sector 23% are made up of foreign workers (ratio of 3 local to 1 foreign worker).

Due to the availability of jobs, labour mobility is high with the attrition rate of about 10% due to job-hopping, retirement, resignation or death which are almost always fill by young workers. So there are opportunities available for young Malaysia and when they also attain senior age they could also enjoy the benefit considering the life expectancy of Malaysians had increased to 75 years.

Therefore it is not true to say that the number of job opportunities available for young Malaysians will be reduced, making it more difficult for them to find work, be promoted, and feed their families.

It is true that should the Bill be passed, it would have huge ramifications to the interests of workers, corporations and the Malaysian economy but in a positive way. Those age 55 and above will be gainfully employed instead of depending on their children for support. Corporations will have experienced and knowledgeable senior citizens longer in the workforce reducing the dependence on foreign workers without infringing on independence of companies to formulate their own polices.

The repatriation of foreign workers salary out of the country will be reduced proportionately, increasing domestic consumption and boosting the growth of the Malaysian economy.

Currently the retirement age in the private sector is at the discretion of employers and not governed by any laws. The age 55 was derived from the Employment Providence Fund Act where age 55 is taken as the age which the contributor can withdraw their savings.

The Public sector had 55 as the age for retirement since the British colonial times. The British had their reasons. The British expatriates did not wish to serve in the then Malaya till the age of 60. They wished to return to their homeland to enjoy the rest of their lives.

After independence, our government maintained 55 till the turn of the millennium when the retirement age was increased to 56, then to 58 and now to 60 years. The private sector did not move in tandem with the public sector and watched at the sidelines.

The government’s attempt to legislate 60 as the retirement age for the private sector is because of the failure of the market forces in moving with the trend set by the public sector, lest Malaysia be the only country in the world without a legal retirement age for the private sector.

Currently most companies have 55 as the retirement age in the employment contract. Upon the employees attaining that age, the employer is deemed to be retired and company offers the same employees a fix-term renewable contract, renewable either monthly or quarterly or half-yearly or annually etc, till they attain the age of 60 or even 65.

This exercise is on a personal to holder basis solely at the discretion and mercy of the company. Companies even reduce the salary and regress with inferior terms and condition of service of the post-retired employees.

Opponent to such a Bill are usually the companies that fear the lost of this management prerogative which they have been using effectively to domesticate the employees. Such an attitude does not argue well for the companies as it stifle the imagination of the employees in contributing to productivity.

Employees on the other hand may hold on to their innovations and use it as a bargaining tool when it comes to extending their age of retirement or take it to other company who may be interested in them and continue their employment there.

Definitely this Bill will benefit both employers and employees and the country as a whole.

The writer is general secretary of Kesatuan Sekerja Industri Elektronik Wilayah Barat Semenanjung Malaysia