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KUALA LUMPUR – Policies that foster workers’ productive employment, such as enhanced opportunities for training and lifelong learning, are needed, said Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed.
He said these policies will allow Malaysians to work longer, and live longer and healthier lives with fewer physically demanding occupations and more digitally enabled workplaces.
“The realisation of productive and inclusive ageing requires policies that build on solid evidence.
“As in nearly all high-income countries, longer working lives will, in turn, require gradual adjustments to the age when most Malaysians retire,” he said in his opening remarks at the launch of the World Bank report titled “A Silver Lining: Productive and Inclusive Ageing for Malaysia” here today.
Based on the report, more than 7% of the country’s population will be aged 65 and above this year, meaning Malaysia is becoming an ageing society.
The rate of ageing will only increase in the coming years, and the share of the population aged 65 and above is projected to double to 14% by 2044 and hit 20% by 2056.
Mustapa said the provision of minimum income protection for older Malaysians requires improvements to the coverage and adequacy of social insurance schemes.
“EPF’s (Employees Provident Fund) i-Saraan scheme and Socso’s (Social Security Organisation) Self Employment Social Security Scheme point in the right direction, but there remains scope for strengthening linkages between these schemes, and for further collaboration with industry associations.
“However, even with such proactive measures, it is unlikely that social insurance schemes will be able to cover the entire labour force.”
Therefore, he said, a modest, broadly targeted tax-financed social pension may be required.
“As any increase in fiscal expenditures may be challenging in the context of the fiscal shock of the Covid-19 pandemic, the provision of minimum income protection for older workers will require a mix of public policy measures on both the expenditure and revenue sides.”
He noted that for the aged-care sector to become a new driver of economic growth, it will be crucial to create an enabling market and regulatory environment for private aged-care provision, and to strategically reorient public financing towards home- and community-based aged care.
“In light of the Covid-19 pandemic, it will also be crucial to continuously improve the aged-care infrastructure and service standards to ensure the health and safety of residents of aged-care homes.” – Bernama, November 24, 2020
