Ageing population raises urgency for long-term retirement reforms

Malaysia is facing mounting pressure to strengthen retirement security as millions of older adults risk entering retirement with inadequate savings while grappling with steadily rising healthcare costs, according to concerns raised during a recent forum on ageing and financial resilience.

Petaling Jaya Member of Parliament YB Lee Chean Chung said the combination of depleted retirement savings and escalating medical expenses presents a significant challenge as Malaysia moves towards becoming an aged nation by 2030.

Speaking at the forum, “Rising Healthcare Costs and Inadequate Retirement Savings: A Double Whammy on Retirement”, organised by the Third Age Media Association, Lee highlighted that Malaysians are living longer than previous generations, placing greater demands on retirement income and long-term healthcare planning.

While describing the Employees Provident Fund (EPF) as a strong retirement institution, he noted that special withdrawals permitted during the COVID-19 pandemic had substantially reduced savings among lower- and middle-income contributors, leaving many more financially exposed in later life.

Lee also pointed to medical inflation, which has consistently outpaced general inflation, as a growing burden that further erodes retirees’ financial security. Rising treatment costs may discourage preventive healthcare, potentially leading to more serious chronic illnesses that require expensive medical intervention.

Policy measures and active ageing among proposed long-term solutions

According to the Department of Statistics Malaysia (DOSM), people aged 60 and above account for about 12 per cent of the country’s population in 2026. The proportion is projected to reach around 15 per cent by 2030, when Malaysia is expected to attain aged nation status, before increasing to one in five Malaysians by 2050.

The government has introduced several initiatives under the 12th Malaysia Plan, including the National Action Plan for Older Persons (2026–2030), which focuses on age-friendly communities, accessible infrastructure and independent living. The proposed Senior Citizens Bill is also expected to establish a rights-based framework to better protect older persons while strengthening national ageing policies.

Forum panellists, including Prof. Anna Azriati Che Azmi, emphasised that addressing population ageing requires more than legislation. They called for broader collaboration involving government agencies, healthcare providers, financial institutions and community organisations to promote active ageing, improve geriatric care, expand care worker training and encourage continued social and economic participation among older Malaysians.