| Abstract |
The older population in Malaysia grew from 0.5 million in 1970 to almost 2.3 million in 2010, making up about 8% of the current total population. By 2020, one in ten Malaysians will be an older persons aged 60 years or over. Older Malaysians are a heterogeneous group with diverse demographic, socio-economic, cultural and religious characteristics. This paper assesses the adequacy, affordability, sustainability, equitability, predictability and robustness of current policies, programs and services to meet the needs of the ageing population in Malaysia. Based on the World Bank’s multipillar pension taxonomy, the analysis will focus on the social assistance scheme for the elderly (BOT), Pay-as-you-go financed state pension (JPA) and defined contribution funds (EPF). Between conditional cash transfers and mandatory retirement savings, the central role of informal support systems in old age has often been overlooked. Result from the past studies have shown that the family has played a central role in providing care and support for aged in Malaysia. A majority of older Malaysians still co-reside with their adult children and receives financial assistance from them. Older Malaysians today are living longer, better educated and wealthier and they will become consumers of a burgeoning silver industry. Balancing social and economic priorities in national development is a challenging task, but the two goals are not mutually exclusive. My topic focus on welfarism or paternalism will continue to render ageing populations as a dependent population, instead of empowering them. An inter-dependence approach, rooted in a mix of individual responsibility, family obligations, active civil society and state provisions (regulatory and non-regulatory), will enable a more broad-based and sustainable solution to meet the present and future needs of the elderly. |
