When old isn’t gold: Unready Malaysia to struggle as population ages
A. Azim Idris, Asian Correspondent
BY 2030, Malaysia can expect its population structure to see a dramatic shift towards aged nation status, if existing trends in fertility and life expectancy rates are to continue on their current trajectory.
In simpler terms, here’s what’s happening: Malaysians are living longer, which means death rates are decreasing. Conversely, birth rates are not increasing, as younger marriage-ready Malaysians choose to focus on their careers over starting families, while economic pressures means young couples cannot afford to raise large families.
The result of this is an aged nation, a phenomenon the country is ill-prepared to face.
The government says currently, senior citizens aged 60 years and above make up 9 percent of the country’s 30.49 million population but that number is tipped to rise sharply in the next 14 years.
By then, Deputy Women, Family, and Community Development Minister Chew Mei Fun said at least 15 percent the population will be made up of the aged group, making Malaysia an aged nation.
The graphics below from Malaysia’s Statistics Department clearly illustrate how the country’s demographics are expected to change over time.
Fig. 1: Demographic overview of the populace in 2015.
Fig. 2: An overview of the demographics in 2030, when the country is expected to hit aged nation status. Those aged above 60 will now make up 9 percent of the population.
Fig. 3: The projection for 2040 shows that those in the aged group will make up a much larger portion of the population.
With 2030 looming closer, Chew said the government has already set up a task force to figure out ways to better accommodate the expected boom in the country’s senior citizen population. The task force has already held consultations with several stakeholders and non-governmental organisations to study the issue.
“The latest developments is a debate on a study by the Malaysia Aging Research Institute (IPPM) to identify issues as well as strategies to overcome them,” Chew said, as quoted by The Star in February last year.
But even with this and few other measures in place, can an emerging economy like Malaysia’s thrive as an aged nation come 2030?
According to Dr Renard Siew, a project adviser with the youth-oriented Global Shapers Kuala Lumpur hub, the country is not ready for the pressures ahead.
From a lack of care centers for the aged, to insufficient senior citizen-friendly infrastructure and retirement savings, Malaysia can expect its fill of problems when more of its citizens leave the workforce and enter their graying years.
