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

We are all getting older and as we do the demand for elderly care will rise.

Ageing economy status is measured by the United Nations based on the share of citizens aged 65 and above and Malaysia is experiencing one of the fastest population ageing transitions in Asia, compressing changes that took other countries a century into just a few decades.

Malaysia officially became an ageing society in 2021 when the population aged 65 and above crossed the 7% threshold and is projected to become an aged society by 2048 as the share of those 65 and older reaches 14%. By 2056–2057 Malaysia is projected to enter super-aged society status, with over 20% of the population aged 65 and above.

Older people need more care and the women, family and community development ministry recently announced that it aims to train 50,000 skilled caregivers for the elderly by 2030 as a strategic step to address the challenges of an ageing nation status. That is 1,250 care economy graduates per month for 40 months.

This scale of training and expansion in the care-economy is very demanding especially in a sector that has long struggled with low wages, staff shortages, burnout and limited career progression.

It would require significant public funding to train 50,000 basic-level carers and might cost a minimum of RM125 million which has not yet been allocated. To train to the highest standards would cost RM500 million.

The cost is not the only barrier because recruiting student carers will be difficult especially since salaries are low and working conditions are physically and psychologically very demanding. Training facilities and qualified trainers are also limited. New programmes at universities and colleges would have to be developed at scale.

Malaysia might also end up training thousands of caregivers without being able to retain them in the sector.

Caregiving is a career often seen as suitable for women entering or re-entering the workforce but if they are young, retention will be difficult as they leave to start their own families. Male carers are more stable but this is not seen as a “manly” career and that social barrier needs to change.

Social attitudes are a major challenge. First there is a social stigma for men to enter this profession. Second there is a cultural attitude that caregiving is a family responsibility.

Third there is an ingrained attitude that caregiving is a soft-skilled, low-level profession when it is an extremely difficult, physically and psychologically demanding, high-skilled profession which should be very well-paid and have high social status, at least as high as doctors or medical practitioners.

Beyond that the economic cost, training and skills development infrastructure and long-term commitment also must be addressed as well as placement, pay and career development after training.

Opening the nursing home industry to foreigners is a low-cost, low-skill solution but the main motivation for foreign carers may be a job with money to send home rather than looking after our vulnerable seniors.

In Budget 2027, the government must establish a proper taskforce of experts and economists to address the multiple issues that affect the care economy and caregiving ecosystem.

Technology can be helpful, but this type of work is a classic form of technology resistant activity where human interaction is essential. So, technology is supportive but can never replace the human touch necessary in caregiving.

More broadly, as Malaysia becomes an ageing society, there is an opportunity for the care economy to develop into a significant employment sector and source of high-value economic activity where caregiving becomes a sustainable, viable profession rather than a low-paid job that workers eventually leave.

The views expressed are those of the writer and do not necessarily reflect those of FMT.

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