PRIME Minister Anwar Ibrahim today said it is projected to only take 23 years for Malaysia to turn from an aging nation to an aged one, with 14% of the population over the age of 65.
He said the government is absolutely committed to bettering the lives of older Malaysians and building a more inclusive and just society for all in line with the concept of Madani.
“In this regard, the government plans to strengthen two pillars of social protection for social assistance. The government will further strengthen social assistance programmes to provide support and a safety net for Malaysians who are facing financial hardship.
“To spur the labour market, the government will continue to strengthen training initiatives, unemployment assistance and other programmes to get Malaysians into jobs that will raise their standard of living,” he said at the International Social Well-being Conference 2024 (ISWC 2024) today.
Meanwhile, Employees Provident Fund chairman Ahmad Badri Mohd Zahir said Malaysia was heading towards being an aged nation by 2043 as a result of increased life expectancy and declining birth rates.
By 2060, the ratio of working-age adults to elderly individuals will drop significantly to three to one, compared to 10 to one in 2020.
Ahmad Badri said although longer lifespans reflect progress, the demographic shift will bring challenges to Malaysian society, especially in healthcare, aged-care facilities and retirement income security.
"A major challenge is the shifting employment landscape in the country, which is increasingly moving towards informal employment through gig work and self-employment.
"This growing segment, consisting of nearly four million workers, is at a greater risk of poverty in old age due to the lack of mandatory contributions to formal pension and retirement programmes," he said at the same event.
To overcome these challenges, the government has supported and enhanced retirement savings for the informal sector through i-Saraan, which encourages voluntary contributions to the EPF.
"In line with the Ekonomi Madani goal of expanding social protection to all, the EPF is exploring further innovations to the EPF scheme to better accommodate the informal sector," he added.
He mentioned that a recent measure involved restructuring the EPF accounts for members under 55, offering more flexibility for everyone. – June 4, 2024.
