SOCIETAL AGEING: WHAT IS HAPPENING IN MALAYSIA AND WHAT SHOULD BE DONE

Abstract

Malaysia is a rapidly ageing country. Relative to the United Kingdom, its social protection systems are underdeveloped. What is more, its political structure and social practices are different from those of the United Kingdom. Accordingly, the political economy of ageing seems to suggest a stark contrast when the two countries are considered alongside one another. Nevertheless, when programmes concerning income for the retired and the provision of care services for the frail elderly are considered, there are more similarities than might have been expected. Both countries face problems with inadequate pension coverage, and the paper considers how more of the self-employed might be brought into savings plans. In both countries, there is debate on whether pension savings should be directed towards investments in the domestic economy. Both countries face a rapid increase in the number of the ‘oldest old’—those most likely to need support, and policymakers are asking themselves how provision for these people should be improved. This article points out how fiscal constraints have led policymakers in the United Kingdom as well as in Malaysia to encourage the family to increase the part they can play. But in both countries, family members, especially women, are no longer willing, or even able, to carry out ‘traditional’ roles. There are lessons to be learnt in both directions. Moreover, in both countries, more attention should be devoted to understanding and explaining the economic and societal consequences of demographic change.