Prioritise investing in healthcare, pharmaceuticals for ageing nation, says Anwar

 

Prime Minister Anwar Ibrahim says preparing for an ageing nation requires a whole-of-nation approach. (Bernama pic)

KUALA LUMPUR: Prime Minister Anwar Ibrahim today said that Malaysia must prioritise investing in critical sectors such as healthcare, pharmaceuticals, and infrastructure conducive to active ageing.

Anwar said that by allocating resources for these areas, Malaysia could position itself to harness the potential of a rapidly expanding market, worth an estimated US$15 trillion.

He said this market was driven by the needs and preferences of an ageing consumer base, noting that Malaysia would become an aged nation in 23 years, with 14% of the population above the age of 65.

“Such investments not only promise substantial returns but also underscore Malaysia’s commitment to ensuring the well-being and quality of life of its ageing population while fostering sustainable economic growth for the nation,” he said in his keynote address at the International Social Wellbeing Conference 2024 here.

Anwar, who is also finance minister, said government-linked investment companies including EPF, Khazanah, and Retirement Fund Inc, had taken the lead in investing in ventures targeted at developing the silver economy in Malaysia.

“Preparing for an ageing nation requires a whole-of-nation approach to improve the lives of older Malaysians and the citizens of the world,” he said.

Anwar also said that the expected increase in government spending on healthcare and social assistance would coincide with a decrease in tax base stemming from the shrinking labour force as a percentage of the population.

It is projected that the old-age dependency ratio in Malaysia will decrease significantly from 10 adults for every elderly person in 2020 to three adults for every elderly person in 2060, he said.

Anwar said this ratio meant that the elderly could no longer depend on the familial structure for assistance.

He said the country would also need to seek reforms in the pension framework to ensure that each generation is able to look forward to growing old with dignity.

“New solutions are needed to make sure that no one is left behind, and that every layer of society benefits from social protection,” he said.

Anwar also said that the decision to expand EPF coverage in phases so that more of the working-age population becomes part of the EPF ecosystem would ensure that more Malaysians can accumulate adequate retirement savings. - FMT