RM208bil economic potential in educating non-citizen children, says study

 The study says the children represent a sizable group and a missed economic opportunity, especially with the country’s aging population.

A recent study found that the 290,437 children born in Malaysia without citizenship in 2016 could generate up to RM208 billion over their lifetime if they were given formal education and remained employed until the retirement age of 65.

PETALING JAYA:

 Providing non-citizen children born in Malaysia with proper education and employment could result in an economic contribution of up to RM208 billion, according to a recent study.

The joint report by Unicef Malaysia and Universiti Malaya’s Social Wellbeing Research Centre (SWRC) estimated that the 290,437 children born in Malaysia without citizenship in 2016 could generate up to RM208 billion over their lifetime if they received formal education and remained employed until the retirement age of 65.

The report said the amount was equivalent to 9.47% of Malaysia’s estimated gross domestic product (GDP) of RM2.2 trillion for 2025 as calculated by the International Monetary Fund (IMF) in a report last October.

The study titled “Wasted Potential: The Economic Case for Educating Non-Citizen Children Born in Malaysia in an Aging Nation” also found that only 10,076 non-citizen children were enrolled in public schools in 2023.

The study defined non-citizen children as children born in Malaysia without Malaysian citizenship due to jus sanguinis nationality laws (citizenship by descent only); refugee children registered with the United Nations High Commissioner for Refugees (UNHCR); stateless children; and children of undocumented or migrant workers.

Noting that non-citizen children born in Malaysia represent a sizable group and a missed economic opportunity, the study said this was especially pertinent as the country’s workforce was projected to shrink due to an aging population.

The percentage of citizens aged 65 and above is projected to rise from 8.1% in 2024 to 14.5% by 2040.

The study also said that excluding non-citizen children born in Malaysia from public education, healthcare, and formal employment forced them to work low-wage informal jobs at a young age, which could trap them in poverty.

Amjad Rabi.

The study’s lead author, Amjad Rabi, told FMT that Malaysia had long overlooked the potential contributions of minority groups within the country’s workforce.

“Even at our lowest estimates, the non-citizen children group could have generated RM87 billion, which is 4% of (IMF’s) estimated 2025 GDP. That is not a small number,” said Amjad.

“The country has been hovering over high-income status for a long time, and we can’t achieve that when we leave many groups in the workforce behind.

“Only education can bring us there.” - FMT