2027 Budget: Elderly care plans face execution test

KUALA LUMPUR: Caring for ageing parents while raising children of their own places a double burden on some families, as medical bills, professional care and daily expenses will stretch household budgets.

Therefore, the 2027 Budget has raised hopes of greater support, but elderly care service providers and senior citizens say effective implementation will be key to easing the strain.

National Secretary of the Association of Residential Aged Care Operators of Malaysia (Agecope) Fong Muntoh described the 2027 Budget as a long-awaited breakthrough after 27 years in the business.

"This is the first time I have seen a budget bring together so many meaningful measures for seniors and the families supporting them.

"The government has taken a very positive step."

Fong said the allocation of more than RM40 million to train 8,000 people for the elderly care sector could help address the shortage of caregivers.

He also cited the reduction in service tax from 8 per cent to 6 per cent and the exemption for elderly care fees of up to RM96,000 a year as measures that could ease the financial burden on families.

The planned National Integrated Care Centres of Excellence in Penang and Sarawak, which were expected to support training, research and elderly care, were another encouraging development, he said.

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Fong added that the measures could also ease the pressure on the "sandwich generation", whose members must care for ageing parents while supporting their own families.

"Now we await the implementation. The announcements are good. Let us hope the delivery is just as good," he said.

Senior care activist Tony Lian, who runs several charitable care centres, said elderly care should be a shared responsibility rather than a burden borne by individuals and their families.

He said the RM1.3 billion allocation for Bantuan Warga Emas, tax relief for family caregivers and investment in care facilities and training reflected greater recognition of the needs of the elderly.

"These measures recognise that ageing is not just an individual or family responsibility, but a shared responsibility that requires government and community support.

"We are an ageing nation. A dignified old age should be a right, not a privilege.

"The 2027 Budget helps make that a reality," he said.

Lian, however, hopes more can be done to help poor, homeless elderly people found abandoned on the streets and in hospitals.

For 65-year-old Nur Mastura Mohd Khalid, the proposed monthly withdrawal option for Employees Provident Fund (EPF) savings could help retirees manage their finances and budget for daily necessities, medical bills and other expenses.

She also said the reduction in service tax on elderly care services could ease the burden on primary caregivers and families paying for professional care.

However, she said that the measures must provide meaningful relief to retirees and families facing a burden who had to grapple with increased costs.

Beyond financial assistance, C.K. Leong, 67, called for safer and more accessible public facilities to help the elderly remain active and independent.

She said elderly-friendly facilities should be available in every neighbourhood — including safer walkways, accessible parks with elderly-friendly exercise machines and affordable day-care centres — particularly for low-income households.

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Leong said poorly designed pavements and high kerbs could discourage older people from walking and exercising.

She proposed installing lifts in older walk-up apartment blocks, with the government and apartment owners sharing the costs.

She said owners should be allowed to use their EPF savings to cover part of their contribution, subject to approval.

Meanwhile, P. Inahsav, 57, said private-sector retirees risked being overlooked despite efforts to strengthen support for senior citizens.

She suggested the proposed minimum monthly pension of RM1,350 as a positive move, but questioned whether it would cover daily necessities and healthcare, particularly for elderly people without family support.

Inahsav said retirees without government pensions could face financial pressure as the cost of living and medical expenses continued to rise.

She called for the private-sector retirement age to be raised to 65, allowing healthy people with insufficient savings to continue working and build their retirement funds.

"Covid-19 took a hit on most people's savings, EPF and livelihood.

"If politicians can work until their 70s or 80s, why can't ordinary citizens who are struggling to make ends meet continue working until 65, especially when they are healthy and able?"

She added that those financially prepared for retirement should retain the option to retire earlier, while others should have the opportunity to work longer.