A better way to prepare for ageing society

Free Malaysia Today

4 hours ago

It looks like Malaysian men are no longer rising to the occasion, but the government thinks a little incentive can help.
Women, family and community development minister Nancy Shukri says the drive to raise fertility rate among Malaysians will now focus on men.
According to Nancy, men should realise that women are not entirely to blame for the drop in the number of new babies, so a 'celebrity' doctor would be brought in to help raise awareness.
She also wants to offer in-vitro fertilisation and fertility services through the National Population and Family Development Board to both men and women.
Nancy's concerns are valid. If the decline in birthrate and extension in life expectancy continue at the current rate, Malaysia will become an ageing society by 2030.
That puts the burden of supporting a higher number of elderly family members on a lower number of children.
Healthcare costs for elderly people amounted to RM3.8 billion, or 0.34% of the GDP in 2014, or 8% of the total health expenditure.
This is projected to rise to RM21 billion, or 1.08% of GDP, by 2040. If the trend continues, it will lead to burnout or financial stress on the younger people.
There are ways to overcome this. The government could provide greater incentives for people to have more children, encourage older people to stay longer in the workforce, or both.
It is unclear what Nancy's 'celebrity' doctor will do, but inducing desire would be a start. This means getting young people to not only tie the knot and start a family at an earlier age, but to have more children, too.
Ideally, the birthrate should rise to 2.1, which is the replacement level, from 1.7 currently. But this is unachievable when people are marrying and starting families at an increasingly older age.
The average age at which a woman has her first child has risen from 25.6 years in 1980 to 27.9 years in 2022 and expected to hit 30 by 2030.
Many women have even opted not to have children in pursuit of other priorities, such as career advancement.
Rapid urbanisation also seems to be a factor, going by the fact that Penang and Kuala Lumpur, the country's biggest urban centres, also have the lowest fertility rate at 1.2, compared with largely rural Terengganu, where the rate is 2.9, well above the replacement level.
Raising a child is getting more challenging. The extended family environment is a thing of the past, so depending on grandparents, uncles and aunts to watch over the children is no longer an option.
To keep the replacement rate up, a change in mindset is essential.
There must be a new support system to help young families meet the challenges of juggling between professional pursuits and the domestic responsibility of childcare.
Offering childcare facilities at the workplace is a good start, but few companies in Malaysia are prepared to invest in this despite the fact that it helps to retain employees.
Extending maternity leave is also a step forward. Norway is way ahead of the rest of the world here. In this Nordic country, new mothers get 54 weeks off at 96% pay. Perhaps our Social Security Organisation (PERKESO) can offer a similar benefit.
At the other end of the spectrum, raising the retirement age can help people stay financially independent for longer, and for those who are already out of the workforce, an improved retirement plan can ease the burden on their children.
As former Swedish PM Fredrik Reinfeldt said at the Employees Provident Fund's (EPF) International Social Wellbeing conference this week, keeping people in the workforce until they reach the age of 75 would align with the longer life expectancy.
At the same conference, the retirement fund's CEO Ahmad Zulqarnain Onn acknowledged that the retirement system must evolve to match the reality that life expectancy has increased.
At best, offering free in-vitro fertilisation and fertility services to men and women is only part of the solution.