As Malaysia faces demographic shifts marked by an ageing population and evolving family structures, experts are urging the integration of the care economy into the country’s broader development strategy. With many younger Malaysians migrating to urban centres or abroad for work, the traditional expectation that families will provide unpaid care for elderly relatives is becoming increasingly difficult to sustain.
Dr. Wan Farisan Wan Sulaiman, head of the Centre for Economics and Public Finance Studies at the National Institute of Public Administration (Intan), highlights how the conventional family care model, which has long served the nation, is reaching its limits. He points to smaller family sizes, longer life expectancies, and rising mobility as factors heightening the demand for formal care services and infrastructure.
The upcoming Thirteenth Malaysia Plan (13MP) and Budget 2027 offer critical opportunities to acknowledge and address care as a key economic sector. While caregiving is often perceived primarily as a cost, it also generates substantial economic value by creating jobs in fields such as nursing, physiotherapy, community care, and the development of age-friendly housing and transportation services.
Moreover, improved childcare and eldercare services could alleviate the unpaid care burden, particularly on women, enabling more Malaysians to participate fully in the workforce. This dual benefit underscores the potential for the care economy to provide both social and economic dividends.
Technology, especially advancements in artificial intelligence (AI), has the potential to transform care delivery. Dr. Wan envisions scenarios where elderly individuals can live independently at home, supported by wearable devices and smart sensors that monitor health and activities. Such systems could alert caregivers and family members to any irregularities, while telehealth services may reduce the need for hospital visits. AI might also streamline administrative tasks for professional caregivers, allowing for more direct engagement with care recipients.
This technological shift opens up opportunities for “AgeTech” businesses, which develop digital tools tailored for older adults and their carers. Promoting innovation in this sector could transform population ageing into a driver of entrepreneurship and economic growth.
However, the adoption of technology raises complex ethical and legal challenges, including data privacy concerns, accountability for AI system errors, and equitable access to advanced care solutions across different income groups. Additionally, environmental design plays a crucial role in supporting an ageing society. Investments in walkable neighbourhoods, accessible public transportation, green spaces, and universally designed, age-friendly housing are essential to help older Malaysians remain active and independent outside of institutional settings.
Ultimately, Dr. Wan stresses that care should be understood as social and economic infrastructure, akin to roads and digital networks, as it enables people to work, engage socially, and maintain dignity. Yet, he cautions that technology cannot replace the human touch, emphasizing that future care models will revolve around humans empowered by machines rather than machines supplanting human caregivers.
As Malaysia’s population ages, the strength of its society may increasingly be measured by how well it supports and cares for its members, reflecting a holistic vision of development that balances economic growth with social wellbeing.