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Sosial Protection System For Older Persons In Malaysia
Ruhaini Hj. Zawawi
Director of Policy and International Relations
Department of Social Welfare, Malaysia
(Ministry of Women , Family and Community Development)
Co-author: Prof. Dr. Tengku Aizan Hamid
Malaysian Research Institute on Ageing (MyAgeing)
Regional Expert Forum on Population Ageing
12-13 Julai 2016, Bangkok, Thailand
22
CONTENTS
4
Population Ageing in Malaysia
Social Protection System in Malaysia
Mapping of Malaysia’s Pension System
Conclusion and Way Forward
• Diagram <15, 15-59, 60+
2035 60+ population reaches 15%
2020 65+ population reaches 7%
2020 Median age reaches 30 years old
2042 Proportion of 60+ exceeds
proportion of <15
2017 Peak of proportion of 15-59
age group at 65.6%
� Declining fertility and increasing longevity hascontributed to rapid population ageing.
� 1 out of 12 Malaysians are an older person in 2015.
� By 2020, it is expected that the number of older persons will increase to 3.3 million, making up about 11% of the total population then.
Older Persons in Malaysia, 2010 - 2040
Social Protection System in Malaysia
SOCIAL
PROTECTION
SOCIAL INSURANCE
Old age / Retirement Schemes (e.g. EPF,
Civil Service Pension)
Employment Injury Insurance (e.g. SOCSO)
SOCIAL ASSISTANCE
Cash or in-kind Transfers to the
Elderly, Disabled & Others (e.g. BOT)
Health Assistance (e.g. Universal Health Care)
Disaster Relief
LABOUR MARKET
INTERVENTION
Livelihood Programs (e.g. 1AZAM)
Skills / Knowledge Development
Programs (e.g. HRDF, Lifelong Learning)
• Major Institutions:
� Employees Provident Fund
� Public Service Department
� Social Security Organization
� Private Pensions
Administrator
� Department of Social Welfare
(Ministry of Women, Family &
Community Development)
� Ministry of Health
� Ministry of Human Resources
� Ministry of Housing & Local
Government
Mapping of Malaysia’s Pension System(Holzmann, 2015, p. 3)
• World Bank’s five-pillar
pension conceptual
framework
Social Protection for the elderly will be streamlined and
integrated to ensure better quality of life . The provision
of assistance will be continued based on basic needs.
The low income group, particularly In the informal sector,
will be encouraged to participate in voluntary savings and
retirement schemes to ensure economic protection
in their old age.
WAY FORWARD
Conclusion (Income Security in Old Age)
• Malaysia is not a welfare state and pursues “an active labour market policy and regards the role of social welfare services as marginal to the development process”.
• Universal social pension for the elderly is not sustainable in the long run.
• With the increase in the civil service mandatory retirement age and the Minimum Retirement Age Act 2012, there is an increase in the labour force participation rate of older workers aged between 55 to 60 years old.
• Minimum wages set at RM900 a month in 2012 (RM800 a month for Sabah & Sarawak) reinforces the security that comes with being employed.
• More has to be done to ensure the financial security of the lifelong poor and groups at-risk such as the disabled, frail / vulnerable who cannot work.
Conclusion
Vision 2020 - every citizen
of the country should be
given the opportunity to
realize their full potential
1Malaysia, People First,
Performance Now -
fairness to all and stresses
that no one’s group would
be left out or marginalized
Social spending will be
productive, not
consumptive and will
change the paradigm of
welfare assistance into a
form of investment.
The vulnerable group is
given every opportunity
and assistance to
participate in the labour
market and economic
activities to generate
higher income and
improve standard of living