PETALING JAYA: As Malaysia moves towards an aged nation status by 2030, concerns over workforce sustainability are mounting.
According to a 2024 Statistics Department report, 7.5% of Malaysians are aged 60 and above, a figure set to double to 15% by 2030.
Malaysian Employers Federation (MEF) president Datuk Dr Syed Hussain Syed Husman said the federation backs hiring senior workers but stressed the need to address challenges to hire and keep them productive.
He said despite government tax incentives for hiring senior workers, businesses can only claim double tax deductions on salaries capped at RM4,000 per month, a limit that discourages many from employing older talent.
He said the cap should be scrapped to encourage more companies to employ seniors.
“If businesses could claim tax deductions for higher salaries, more would be willing to hire senior workers. The current application process is also too complicated,” he told theSun.
Syed Hussain warned that if poorly managed, Malaysia’s ageing population could negatively affect the labour market, healthcare and social security.
“Senior workers can be valuable, provided they are healthy and skilled. Some industries benefit from experienced mentors, and sectors like manufacturing, food services and consulting are increasingly hiring older workers for their reliability.”
He added that many seniors work to stay active or boost their income.
Syed Hussain acknowledged the hurdles in integrating seniors into the workforce.
“Physical limitations may require flexible hours, ergonomic workplaces and remote work options. Technological advancements can be challenging to some seniors as they struggle with digital tools.
“Salary expectations also pose difficulties, as experienced professionals may demand higher wages.”
He stressed the need for lifelong learning programmes to keep senior workers relevant.
He added that better Employees Provident Fund employer contributions would also ensure financial security for retirees.
Universiti Kuala Lumpur economic analyst Dr Aimi Zulhazmi Abdul Rashid said companies hire senior workers not just for their expertise but also for their loyalty, which often surpasses that of younger employees.
“Younger workers frequently switch jobs for better pay, whereas senior employees tend to stay longer if the work environment is good.”
He said some employers find younger staff attitudes misaligned with industry expectations, making senior workers a more attractive option.
“Older employees may lack the physical stamina of younger staff, but their soft skills, knowledge and networks add immense value. Their industry familiarity also reduces training costs.”
Aimi said beyond financial reasons, many seniors work to stay mentally active.
“After six months to two years of retirement, many seniors seek jobs or business ventures to keep their minds sharp. Boredom and loneliness at home can impact cognition, making work appealing.”
However, he cautioned that an ageing workforce could impede the career progression of young workers, leading to frustration or even brain drain.
“Older workers can drive up medical costs and insurance premiums, and retaining them may require higher salaries, straining company budgets.”
He said with strategic workforce planning, businesses could leverage on the experience of senior workers while ensuring career growth for younger employees.
