Malaysia is one of Asia's biggest employers of foreign labour. But recently, cases of deaths, abuse and forced labour have come to light. What is going on? Who is protecting these migrant workers?
In March 2001, the Malaysian Government raised the retirement age for civil
servants by one year to 56.
<p>In the private sector, the retirement age is maintained at 55, but it is becoming
a norm in the sector for employers to offer retired employees contract extensions.
They are usually on an annual basis or mutually agreed by both sides.</p>
<p>The umbrella body for public sector unions, Congress of Unions of Employees
in the Public and Civil Service, and the Malaysian Trades Union Congress strongly
feel that all civil servants should be allowed to work until they are at least
58.</p>
<p>The Pensioners Association of Malaysia has been pushing for the retirement
age to be set at 60, while the Malaysian Human Rights Commission believes that
people should continue working until at least 60.</p>
<p>The Malaysian Academy of Sciences puts 65 as the minimum retirement age for
government scientists, just like the Higher Education Ministry has done for
university lecturers.</p>
<p>Malaysian employers are also favourable towards the notion that employees continue
working after the retirement age.</p>
<p>Malaysian Employers Federation (MEF) executive director Shamsuddin Bardan said
employees should be encouraged to work beyond retirement age because they are
experienced and economically active.</p>
<p>However, he said the cost of hiring post- retirement employees should not be
high for employers.</p>
<p>Shamsuddin said that currently, the Employees Provident Fund (EPF) statutory
contributions of 11 per cent of a worker’s monthly salary and 12 per cent from
an employer are applicable for employees who work beyond their retirement age.</p>
<p>"This ought to be on a reduced rate so that employers are encouraged to
offer chances for retired people to contribute to the economy," he said.</p>
<p>He feels that there should be an appropriate scheme or incentives for employers
to retain retired employees in the workforce without having to incur higher
retaining costs.</p>
<p>The retirement age in Singapore reflects the gobal average of 62.</p>
<p>Shamsuddin said that in Singapore, retired workers are encouraged to do jobs
which are normally done by foreign workers, such as cleaning services or at
petrol stations.</p>
<p>"We can do the same as the life expectancy in Malaysia is increasing and
male senior citizens can come out in strong forces to do those non-strenuous
jobs.</p>
<p>"This way, we can reduce our dependency on foreign workers," he said.</p>
<p>On an ageing workforce, Shamsuddin said that Malaysia has yet to reach that
stage, but it is moving towards that.</p>
<p>"We should be prepared from now so that we can maintain our competitiveness,"
he said.
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