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The government's long-term plans include reforms to social and healthcare financing, stronger fiscal sustainability, and the development of the silver economy to help Malaysia adapt to an ageing population while creating new jobs and investment opportunities.
Malaysia is planning to develop a comprehensive social protection system as part of its long-term strategy to prepare the country for aged nation status, according to the Ministry of Economy.
The ministry said the move will be accompanied by efforts to build a sustainable healthcare system and a high-productivity economy, ensuring Malaysia is better prepared to respond to the structural demographic changes brought about by an ageing population.
The ministry shared this in a written parliamentary response to a question by Datuk Muhammad Bakhtiar Wan Chik (PH-Balik Pulau), who sought details on the government's short-, medium-, and long-term strategies to manage Malaysia's transition to an aged nation, including its impact on the labour market, healthcare system, social protection, economic productivity, and the country's fiscal position, as well as whether assistance or subsidies for health insurance and takaful premiums for senior citizens are being considered.
To answer the question, the ministry said Malaysia is undergoing a rapid demographic transition towards becoming an aged nation, with those aged 65 and above projected to account for more than 14% of the country's population by 2048.
It noted that the demographic shift will have significant implications for the labour market, healthcare system, social protection, economic productivity, and the country's fiscal position. To prepare for these changes, the government's strategy will be guided by the 13th Malaysia Plan (13MP) 2026-2030, together with the National Elderly Policy, National Elderly Action Plan, Health White Paper, MADANI Economy framework, and the strengthened Silver Economy Framework.
In the short term, the government said it will prioritise strengthening the country's preparedness during the 13MP period by expanding workforce participation among women, productive seniors, and vulnerable groups through skills upgrading, retraining, and lifelong learning programmes. It will also focus on strengthening preventive and primary healthcare, improving targeted social assistance, expanding social protection, enhancing retirement savings adequacy, and creating a more age-friendly environment through better public facilities, housing, transport, and social services.
Over the medium term, from 2031 to 2040, efforts will shift towards adapting Malaysia's economic and social structures to an ageing population. Planned measures include expanding flexible and senior-friendly employment practices, retaining experienced workers in strategic sectors, strengthening the care economy, and accelerating the adoption of technology, automation, and digitalisation to help offset workforce shrinkage and improve productivity.
The ministry added that social protection measures will also be strengthened through the integration of social databases, improvements to retirement income protection mechanisms, and the expansion of sustainable, community-based long-term care services.
Looking further ahead, the government aims to establish a comprehensive social protection system, supported by a sustainable healthcare system and a high-productivity economy.
Alongside these efforts, the government will aim to continue developing the silver economy by supporting products, services, and industries that cater to the needs of older adults, creating new employment and investment opportunities.
On the proposal to introduce assistance or subsidies for health insurance and takaful premiums for senior citizens, particularly those from low- and middle-income groups, the ministry said it is evaluating various policy options in line with the Health White Paper.
For now, the ministry said, the government's priority is to strengthen the public healthcare system, expand access to quality healthcare services, and develop more sustainable and inclusive healthcare financing mechanisms. Any decision on introducing premium assistance or subsidies will be assessed based on the needs of the target group, the effectiveness of the protection, fiscal implications, and long-term sustainability, in line with the 13MP and the MADANI Economy framework.
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