Malaysia’s Demographic Shift Poses Big Challenge


Low birth rates and an ageing population are shrinking the talent pool.

People are having fewer babies today. There has been a steady decline in fertility rates worldwide since 1950. Live births have shrunk by half, from five babies per woman in 1950 to only 2.5 babies in 2015. Economists think this could imminently impact economic performances if no measures are taken to mitigate the demographic shift.

In Malaysia, changes in the demographic landscape are rarely picked up by policymakers. The prolonged implications that population policies – such as health care, wealth creation, human capital and community service – have on economic development are therefore not effectively reviewed. A long-term plan is needed to formulate strategies that capture the welfare needs of our future ageing population, as well as our human capital requirements.

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