Malaysian Employers’ Federation president Syed Hussain Syed Husman said the country’s workforce is largely concentrated in low- to mid-skilled jobs as well as manual and other physically demanding work, mostly in the manufacturing, agriculture, construction and informal work sectors.
“Expecting employees in these sectors to remain productive until the age 65 or 75 is unrealistic and will lead to workplace safety issues and declining productivity,” he told FMT.
Syed Hussain said “softer” roles such as those relying on communication, advisory, mentoring, or desk-based tasks are largely concentrated in the civil service, finance, education and selected services sectors, and make up only a fraction of the country’s total employment.
He also said the informal sector as well as micro, small and medium-sized businesses, which form the backbone of Malaysia’s labour force, often lack structured human resource practices and age-friendly work designs.
“Most are ill-prepared to manage ageing employees from both a health and ergonomic standpoint,” he said.
He was commenting on former Swedish prime minister Fredrik Reinfeldt’s call for employee retirement models to be reshaped in line with longer life expectancies and to sustain pension systems.
Reinfeldt, an economist who served as Sweden’s prime minister from 2006 to 2014, said many retirement norms were based on outdated assumptions, and that, in the modern day, employees should be encouraged to work until age 75.
He suggested that older workers transition into roles that suit their evolving abilities, supported by strong policy frameworks.
Syed Hussain expressed concern that age-related health issues could raise medical costs and absenteeism. He noted that most employers struggle to offer health insurance, as existing schemes are not suited for older workers.
“Insurers are often unwilling to cover them, or charge higher premiums. Risk of occupational injuries may also increase with age, posing both liability and moral concerns for employers,” he said.
There are also significant costs involved for employers to reskill and redeploy ageing staff, especially in fast-evolving sectors like digital technology and finance.
‘Not impossible’
Although Malaysia does not have a wide base of “softer” roles to absorb older employees at scale, Syed Hussain does not think the idea is unworkable.
“With clear policy direction, tripartite collaboration, and focused employer support, Malaysia can progressively build the right ecosystem for meaningful older employees’ career transitions.”
Dr Wong Teck Wee, vice-president of the Malaysian Healthy Ageing Society, said that while working until 75 may be impractical in labour-intensive and informal sectors, white-collar jobs could accommodate workers 65 years or older, provided the workplace culture allows it.
He said that while Malaysia lacks formal pathways for transitioning older workers into “softer” or knowledge-driven roles, “untapped potential” exists in several sectors.
These include mentorship and coaching roles in industry, education and healthcare, as well as community-based jobs such as at wellness centres and as aged care coordinators. They may also consider customer service, training and administrative roles.
He said the elderly can also play an important role as tourism and culture ambassadors, especially in heritage towns such as Melaka and Penang.
Wong called for the government to create a dual-track retirement model, with earlier exit options for physically-demanding roles and flexible extensions for knowledge-based roles.
He proposed a national framework for productive ageing, backed by inter-agency collaboration, to identify industry-specific roles for older workers and to expand opportunities in “softer” employment sectors.