KUCHING: Malaysia cannot afford to remain reactive by focusing solely on developing an elderly-friendly ecosystem, says Universiti Malaysia Sarawak (Unimas) senior lecturer Dr Dzul Hadzwan Husaini.
He said without preventive measures like the 70 Million Population Policy, the shrinking of the productive-age population would directly affect the nation’s ability to compete in the global economy.
“This policy is not merely an option, it is a strategic necessity to ensure Malaysia’s long-term economic and social sustainability,” he said in response to Batang Sadong MP Rodiyah Sapiee’s proposal during the debate speech on the 13th Malaysia Plan (RMK13) at Dewan Rakyat Parlimen on Monday (Aug 11).
Earlier, he said that data from the Department of Statistics showed that in the first quarter of 2025, the country’s population stood at approximately 34.2 million, an annual growth of only 0.9 per cent compared to the previous year.
“This slowdown is largely due to the fertility rate falling well below the replacement level. According to World Bank data, Malaysia’s Total Fertility Rate (TFR) in 2023 was 1.55 children per woman, far short of the replacement level of 2.1.
“Media reports in May 2025 revealed that the country now records only about 1,039 births per day, one birth every minute.”
He stressed that as a developing nation, Malaysia still needs population growth to strengthen its workforce, stimulate markets, and sustain economic momentum.
“However, our economic structure is not yet ready to “settle” into an ageing society, as it still relies heavily on natural resources rather than a fully talent- and innovation-based economy.
“Without a sufficient young population, this transition will be harder to manage and could undermine productivity and fiscal capacity.
“The economic impact of becoming an aged nation is immense, especially for a country like Malaysia that is not yet prepared for it.”
He added that the rising fiscal demands to fund healthcare, pensions, and social protection for the elderly will constrain public finances, while a shrinking workforce will depress productivity and limit economic expansion.
“This is further compounded by Malaysia’s Economic Complexity Index (ECI), which remains modest at around 0.98 in 2023, ranking 25th globally.
“While better than some regional peers, this is still far behind advanced economies such as Japan (ECI 2.26) and South Korea (ECI 2.01).
“The ECI matters because it reflects the diversity and sophistication of a nation’s economic structure — a key determinant of economic resilience in the face of demographic shocks.”
Dzul said that pro-birth policies in countries like Thailand, Vietnam, China, South Korea, and Japan, which include fertility treatment subsidies, maternity leave extensions, cash incentives, childcare allowances, and housing aid, prove that high population density is not a reason to delay.
“The fact that countries with extreme density and ageing challenges still pursue aggressive pro-birth policies shows that population density is not a valid reason for Malaysia to delay long-term population strategies.
“Against this backdrop, reviving the 70 Million Population Policy is both timely and necessary but it must consider current realities, including living costs, youth aspirations, and the need to align incentives with modern labour market dynamics.
“Such initiatives may require funding, but it can be managed by redirecting money from less effective subsidies like fuel and food, as the cost of inaction will be far greater in the future.”
