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Friday, March 28, 2025

Phased retirement proposal draws mixed reviews

 

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Logistics workers say phased retirement may not be feasible due to long hours and physically demanding tasks. (Freepik pic)

PETALING JAYA
A proposal to introduce flexible retirement schemes in Malaysia has been dismissed as unsuitable by some businesses while others agree that it may work for specific categories of workers.

Association of Malaysian Hauliers (AMH) president Soo Chee Yeong pointed out that in the haulage sector, long hours and physically demanding tasks make it difficult to allow a person to gradually reduce his workload in preparation for retirement.

“Our staff work 10 to 12 hours a day, mainly doing three round trips. If we reduce their workload, they may not earn enough (to make ends meet),” he told FMT.

He said that if drivers take only one or two trips during the first half of the day, it would be difficult to find another driver to fill in for the second half.

Soo said that haulage equipment requires substantial investments, while flexible schedules for drivers would leave some trucks idle, which could lead to revenue losses.

He said drivers are sent for medical check-ups every year and those deemed medically unfit to drive heavy vehicles have to retire immediately.

On the other hand, he conceded that these drivers could be given back-end logistics jobs.

“We can use them to send trucks and shunting equipment for repair and maintenance, which is lighter work and normally done only during the day,” he added.

Early this week, a fellow at the Institute of Strategic and International Studies, Calvin Cheng, proposed that flexible retirement schemes be introduced to scale down an employee’s workload over a five-year period before they call it a day.

He said the current model that requires workers to retire at a specific age makes it difficult for them to balance financial security with overall well-being. The official retirement age in Malaysia is 60.

Malaysians aged 60 and above now make up 11.1% of the population, and the ratio is expected to rise to 15% in 2030, making the country an ageing nation.

Former SME Association president Ding Hong Sing is more open to the concept of phased retirement, but he insists that it is more suitable for white-collar workers for whom physical strain is less of a factor.

Ding told FMT that employees could simply move into consultancy or advisory positions with fewer workdays per week.

“They may end up with lower salaries, but with their expertise, they will be an asset to the company,” he added.

Ding said these workers can also act as consultants for smaller companies.

“This will help the industry grow while ensuring they continue to get an income. It’s a win-win situation,” he added. - FMT

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