THE service tax rate for elderly care services will be reduced from eight per cent to six per cent effective Jan 1, 2027, with a full exemption for care fees of up to RM96,000 annually.
Prime Minister Datuk Seri Anwar Ibrahim said the allocation for Elderly Assistance would also be increased to RM1.3 billion next year, benefiting nearly 200,000 recipients.
“The government will also draft a Senior Citizens Bill to address neglect and strengthen the comprehensive care ecosystem as the nation prepares to transition into an ageing society,” he said.
Anwar said more than RM40 million had been allocated through the Human Resource Development Corporation (HRD Corp) to train 8,000 individuals to strengthen the workforce in the elderly care sector, while creating employment opportunities in the field.
He added that two National Integrated Care Centres of Excellence (NICE) would be established in Penang and Sarawak to support training, research and elderly care services.
Meanwhile, Employees Provident Fund (EPF) members aged 55 and 60 would have the option of enrolling in the i-Emas scheme to receive monthly withdrawals while allowing their remaining savings to continue earning dividends.
