The Aging Problem in Malaysia

    

    Malaysia is facing a serious challenge of population aging, which means that the proportion of older people (aged 60 and above) is increasing relative to the younger ones. This trend is driven by the declining fertility rate, the increasing life expectancy, and the aging of the baby boom generation. According to the United Nations, Malaysia is expected to become an aged nation by 2030, when 15% of its population will be older than 60. By 2050, this figure will rise to 24%, which means that one in four Malaysians will be an older person.

Population aging has significant implications for the social and economic development of the country. It will affect various aspects of society, such as the labor force, the health care system, the pension system, the family structure, and the quality of life of older people. Some of the challenges that Malaysia will face are:

• A shrinking and aging labor force will reduce the productivity and competitiveness of the economy. The labor force participation rate of the older people is relatively low, at 38.5% in 2020, compared to 80.1% for the prime-age workers (aged 25-54). The dependency ratio, which measures the number of dependents (children and older people) per 100 working-age people, will increase from 47.7 in 2020 to 76.5 in 2050, meaning that there will be fewer workers to support more dependents. This will pose a challenge to the economic growth and the fiscal sustainability of the country.
• Rising demand for health care and long-term care services will put pressure on the public health system and the fiscal budget. Older people are more likely to suffer from chronic diseases and disabilities, which require more medical attention and care. According to the National Health and Morbidity Survey 2019, the prevalence of non-communicable diseases, such as hypertension, diabetes, and cardiovascular diseases, among older people was 74.3%, 26.9%, and 12.5%, respectively. The health expenditure per capita for the older people is estimated to be three times higher than that for the younger ones. Moreover, older people may also need long-term care services, such as personal care, nursing care, and social care, which are currently limited and costly in Malaysia.
• A growing need for social protection and income security for older people, who may face poverty and vulnerability in their old age. The current pension system in Malaysia covers only about one-third of the labor force, mainly the public sector employees and the formal sector workers. The majority of the older people rely on their personal savings, family support, or informal work for their income. However, these sources may not be adequate or sustainable in the future, especially for low-income and rural older people. According to the Household Income and Basic Amenities Survey 2019, the incidence of absolute poverty among older people was 7.2%, higher than the national average of 5.6%. Older people may also face other risks, such as inflation, fraud, abuse, and discrimination, which can affect their income security and dignity.
• A changing family structure and social norms will affect the intergenerational relationships and the well-being of older people. Traditionally, the older people in Malaysia live with their adult children and receive care and support from them. However, this family arrangement may change due to urbanization, migration, education, and modernization. The younger generation may have different values and preferences, and may not be able or willing to take care of their aging parents. The proportion of older people living alone or with their spouse only increased from 15.8% in 2004 to 20.7% in 2014. This may lead to social isolation and loneliness among older people, which can affect their mental and emotional health.

To address these challenges, Malaysia needs to adopt a comprehensive and coordinated approach that involves all stakeholders, such as the government, the private sector, the civil society, and the older people themselves. Some of the possible strategies are:

• Promoting active and healthy aging means enabling older people to participate in economic, social, and cultural activities, and to maintain their physical and mental health. This can be achieved by providing more opportunities and incentives for older people to work, volunteer, learn, and engage in their communities, and by improving their access to health care and preventive services. Active and healthy aging can enhance the productivity and contribution of older people, as well as their quality of life and well-being.
• Strengthening the social protection and income security system for older people means ensuring that they have adequate and stable incomes to meet their basic needs and enjoy a decent standard of living. This can be achieved by expanding the coverage and adequacy of the pension system, by providing more social assistance and benefits for the needy older people, and by encouraging more savings and investments for retirement. Social protection and income security can reduce the poverty and vulnerability of older people, and increase their consumption and demand.
• Enhancing the family and community support for the older people, which means strengthening the bonds and mutual obligations between the generations, and fostering a culture of respect and care for the older people. This can be achieved by providing more financial and non-financial support for the family caregivers, by developing more community-based and home-based care services, and by raising public awareness and education on aging issues. Family and community support can improve the social and emotional well-being of older people, and promote social cohesion and harmony.

Population aging is inevitable, but it is not necessarily a problem. If managed well, it can be an opportunity for Malaysia to harness the potential and wisdom of the older people, and to create a more inclusive and sustainable society for all.

The Aging Problem in Malaysia