Govt studying indicators to measure silver economy's GDP contribution

The Malaysian government is examining the creation of specific indicators to gauge the silver economy's impact on the nation's gross domestic product (GDP). Economy Minister Akmal Nasrullah Mohd Nasir acknowledged the silver economy's potential as a fresh growth engine, catering to the requirements of an aging populace. However, calculating its GDP contribution mandates uniform definitions, scope, and statistical methodologies, as these actions span numerous sectors.

Nasir responded to a query from Datuk Seri Dr Zaliha Mustafa (PH-Sekijang) during a session in the Dewan Rakyat. Before establishing baseline figures and targets to ensure the silver economy's contribution is precisely measured, the study of these indicators was deemed crucial. The White Paper on Preparing for an Aged Nation, along with the National Ageing Action Plan, is anticipated to be presented in the Dewan Rakyat following Cabinet endorsement, with the government aiming to introduce it during the ongoing parliamentary session.

Malaysia officially transitioned into an aging nation in 2021, with individuals aged 65 and above representing seven percent of the country's population. Projections suggest that Malaysia will become an aged nation by 2048, when the proportion will reach 14 percent, and a super-aged nation by around 2060, when it will reach 20 percent.

The shift from an aging nation to an aged nation is projected to take approximately 27 years, from 2021 to 2048, compared to 115 years in France, 73 years in Australia, and 69 years in the United States.

Nasir pointed out that Malaysia faces greater challenges during this phase due to its lower income level at the onset of the demographic transition when compared to developed nations. The demographic shift will also pose additional challenges, such as slower labor force growth, the adequacy of retirement savings, and increased healthcare and care needs.