An ageing society needs a well-funded strategy in Budget 2027

Malaysia is rapidly ageing, and the demand for elderly care will increase accordingly. According to the United Nations, over 7% of the population aged 65 and above marks a country as an ageing society, a status Malaysia officially reached in 2021. The country is expected to enter super-aged society status by 2056-2057, with over 20% of its population aged 65 and above.

To tackle this challenge, the Women, Family and Community Development ministry plans to train 50,000 skilled caregivers for the elderly by 2030, with each person requiring approximately 1,250 training slots over the next 40 months. However, training such a large number of caregivers poses significant challenges, including low wages, staff shortages, burnout, limited career progression, and insufficient training facilities and qualified trainers.

The cost of training caregivers to the highest standards is estimated to be between RM125 million and RM500 million, neither of which has been allocated yet. Furthermore, recruiting student caregivers is difficult due to low salaries, physically and psychologically demanding working conditions, and the perception that caregiving is a low-skilled, low-status profession.

Social attitudes towards caregiving also play a crucial role, with stigma, cultural attitudes, and the belief that caregiving is a family responsibility posing significant barriers. Additionally, the economic cost of establishing a well-funded caregiving strategy and addressing the long-term commitment required must be considered.

The government must establish a taskforce of experts and economists in Budget 2027 to address these multiple issues affecting the care economy and caregiving ecosystem. While technology can assist in the care economy, human interaction remains essential, making technology a supportive tool rather than a replacement. Ultimately, Malaysia has an opportunity to develop the care economy into a significant employment sector with high-value economic activity if caregiving becomes a sustainable, viable profession with proper public funding, support, and social acceptance.