AGING WORKFORCE IN MALAYSIA: NAVIGATING CHALLENGES AND SHAPING POLICIES

Abstract

As populations worldwide continue to age, governments face significant issues concerning the viability of public pensions, the provision of healthcare, and labour market dynamics. The shift toward an aging population will have significant implications for economies, social well-being, and public finances. In Malaysia, the declining fertility rate and rising number of those aged 60 and above will substantially affect economic implications, such as changes in labour force participation structure, productivity, and consumption patterns. This narrative review synthesises literature from peer-reviewed journals, policy papers, and statistical reports on Malaysia's ageing workforce from 2015 to 2024. Sources were selected based on relevance to pensions, healthcare, and the labour market. Themes were identified and grouped into demographic trends, economic impacts, and policy implications for comprehensive analysis. While older workers contribute to productivity, the increasing prevalence of chronic health conditions strains healthcare services. Addressing these challenges requires a dual approach: implementing strategies to attract and retain younger professionals while fostering an inclusive environment that supports older workers. Policies must balance accommodating the needs of an ageing workforce and promoting opportunities for younger generations. Workforce inclusivity, adaptive policies, and investments in lifelong learning are essential to navigating these demographic shifts effectively.