The case for an industrial policy of care work

 

Foreign investments and policy developments in data centres and semiconductors have filled news headlines in recent months.

The National Industrial Master Plan (NIMP) 2030, the National Energy Transition Roadmap (NETR), and the National Semiconductor Strategy (NSS) have all boosted economic growth and job creation in the tech sector.

This promising economic outlook, however, is unequal, since not everyone can or wishes to pursue a job in science, technology, engineering, and mathematics (STEM).

Reflection upon recent developments raises the question: What does the future hold for those not involved in these industries?

Perhaps the answer lies in the often-overlooked care economy.

What is care economy

For those unfamiliar with the term “care economy”, it refers to paid and unpaid care for children, elders, the disabled, and the ill.

Care work covers a wide range of jobs in healthcare, social care, childcare and domestic care, all of which are critical to society.

Whether it is direct, personal and relational care like feeding a baby and nursing an ill family member or indirect care like cooking and cleaning, these jobs are often underpaid or unpaid, except for a few highly professional roles like doctors and therapists.

According to ISIS Malaysia’s paper titled “Building a cradle-to-grave care economy for Malaysia”, the authors estimated that unpaid care work in Malaysia could be valued at about RM379 billion, making it the second-largest sector behind manufacturing in terms of GDP.

When care economy is undermined

Traditional familial, societal and cultural norms heavily influence the care economy.

From childcare to eldercare, most Malaysians rely on women in their families or intergenerational support from elders.

Although this informal practice provides affordable care, it comes at the expense of caregivers’ career aspirations, contributing to Malaysia’s low female labour participation rate.

Care needs grow over time, with ageing parents, cost inflation and changing family structures raising financial and emotional strains.

This gives rise to a growing “sandwiched generation” with financial and emotional burdens to care for their children and parents.

Despite their contributions, care workers are not recognised, rewarded or represented fairly.

Prevailing societal norms place greater care responsibilities on women, hindering equitable care work distribution.

When policymakers inherit these values, care work becomes a welfare service.

Care policy focuses more on affordability and servicing the underprivileged rather than realising its full potential as a driver for nation-building.

As a result, the immense value of the care economy and its spillover benefits remain untapped.

The case for developing Malaysia’s care economy

It is time to harness the care economy for nation-building.

The government should take the common policy suggestion of developing public care systems for a complete life-cycle approach to social protection for all.

Beyond this, we should consider an industrial policy to develop a viable and contributing care economy.

To meet Malaysia’s long-term care needs, the industrial policy for the care economy should bundle the efforts of public investments, care polices, social protection and the private sector.

Three policy areas should be prioritised.

First, it should close the legislative gaps in professionalising all care professions, including expediting the Social Work Profession Bill.

Efforts should also be made to connect legislative requirements with job training syllabi, industry qualifications and registration process.

This will assure quality care work and long-term talent flow.

Second, it should streamline the minimum criteria, licensing requirements and registration process for establishing care centres.

A key ministry should lead the effort to set up a green lane pathway for overcoming disparate regulations and fragmented processes among federal ministries, state governments and local councils.

The government should also use the regulatory sandbox to design licensing standards and regulations promoting innovative care solutions in the private sector.

Third, it should increase public investment and explore innovative financing models to develop the care economy.

The government should learn from the ongoing public healthcare system outsourcing programme to involve qualified private sector partners in meeting long-term care needs.

Moreover, social impact bonds could be considered to attract private capital dedicated to improving care services.

In conclusion, while the tech sector is promising, it should not eclipse the potential of other critical industries.

Malaysia should consider an industrial policy for the care economy to promote balanced economic development while meeting long-term care needs of all its citizens.

To this end, investing in the care economy is not only a social good but also an economic need for inclusive nation-building. - FMT

The views expressed are those of the writer and do not necessarily reflect those of MMKtT.