KUALA LUMPUR, July 30 (Bernama) -- Bursa Malaysia's key index closed at an intraday high today, supported by continued buying interest even as renewed geopolitical tensions and a weaker overnight lead from Wall Street following the US Federal Reserve's (Fed) decision to stand pat on interest rates weighed on broader sentiment. The Fed has decided to hold rates steady for the fifth consecutive meeting, with the Federal Funds Rate unchanged between 3.50 per cent and 3.75 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.84 points to 1,720.40 from yesterday’s close of 1,715.56. The benchmark index, which opened 1.14 points lower at 1,714.42, hit its lowest level of 1,710.69 in early trade before gaining momentum for the rest of the day. However, the broader market was negative with losers outpacing gainers 581 to 411, while 612 counters were unchanged, 1,173 untraded, and 87 suspended. Turnover declined to 2.49 billion units valued at RM2.25 billion from ...
China's top lawmakers approved a plan to gradually raise the retirement age for the first time since 1978, aiming to slow the decline in the labor force and address the challenges of an aging population. This change, set to begin on January 1, 2025, will be implemented gradually over 15 years.
Key Changes:
- Men's Retirement Age: Will increase from 60 to 63.
- Women's Retirement Age: Will rise from 50 and 55 to 55 and 58, depending on their roles (ordinary workers or management positions).
Rationale and Expected Impact:
- The adjustment is intended to counter demographic pressures on China's economy by allowing people to work longer. The move is expected to help stabilize the workforce and reduce the strain on the pension system.
- A gradual implementation aims to minimize potential public backlash and economic disruption amid an already slowing economy.
- From 2030, workers will also need to contribute to their pension accounts for longer periods, with the eligibility period gradually increasing from 15 to 20 years.
Concerns and Reactions:
- The decision has sparked discontent on social media, where many voiced concerns over the current sluggish job market and age discrimination by employers.
- Experts, such as Michelle Lam from Societe Generale SA and Ding Shuang from Standard Chartered, have noted that the move is likely driven by the need to ensure the sustainability of the pension system amid China's rapidly aging population.
Demographic Challenges:
- China's population is aging rapidly, with people aged 65 and older expected to comprise 30% of the population by around 2035, up from 14.2% in 2021. This shift necessitates adjustments to the retirement age to alleviate financial pressures on the government.
The approved plan is seen as a crucial step in China's efforts to adapt to its demographic changes, balancing the need for a sustainable pension system with the concerns of its aging workforce.
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