LETTERS: With seven per cent of Malaysians at least 65 years old in 2020, we are, in the Organisation for Economic Cooperation and Development's eyes, an "ageing society".
Studies show that an ageing population does provide significant prospects for sustainable development of the economy, labour market or society.
The popular view is that increased employment of older workers negatively affects the job prospects of youth, but the World Bank finds no such evidence.
In fact, if more Malaysians aged 50 to 64 were engaged on the labour market, it can help address Malaysia's talent shortages.
In Sweden, there is evidence that an older workforce doesn't mean a loss in productivity. On the contrary, it rapidly expands.
In the United Kingdom and Kenya, a 2017 study found that older workers contribute to an entrepreneurial ecosystem.
A United Nations (UN) study found that recruiting older persons from rural areas provided plantation companies vital expertise in farming practices and knowledge in handling environmental degradation.
Studies also suggest that people can contribute to the economy beyond their retirement age.
If Malaysia needs examples of how to manage an older workforce, we don't have to go far. Look at Singapore, where 25 per cent of its population is forecasted to be older than 65 by 2030, according to Asian Development Bank statistics.
The republic's labour policies have clear and specific notations in a separate retirement and re-employment act.
Employers are not allowed to dismiss any employee based on age. Instead, employers must offer re-employment to eligible employees who turn 62 (retirement age in Singapore), up to age 67, to continue.
And there are also options for re-employment by another employer if the current employer is unable to re-employ.
If the employer has considered all options and is still unable to identify a suitable job, it may offer a one-off Employment Assistance Payment (EAP) of 3.5 months' salary, subject to a minimum of S$5,500 (RM16,000) to a maximum of S$13,000 (RM50,000).
A government funded scheme called "Special Employment Credit", entitles Singaporean employers who hire people aged 50 and above earning up to S$4,000 monthly to a credit of eight per cent of the employee's monthly wages. This is a boon for those in the B40 and M40 group.
Employers who re-employ persons 65 and above will receive an additional offset of up to three per cent of an employee's wages.
This is something to be emulated.
Sadly, the UN has found that older persons tend to be overlooked in policy discourse, and their needs and rights are often inadequately addressed.
As the UN puts it: "... older persons must be recognised as the active agents of societal development in order to achieve truly transformative, inclusive and sustainable development outcomes."
Dr Thanaseelen Rajasakran
Assistant professor
Faculty of Creative Industries
Universiti Tunku Abdul Rahman
The views expressed in this article are the author's own and do not necessarily reflect those of the New Straits Times