Tomorrow’s

Malaysia
Tomorrow’s
Malaysia
Demographics Shift

Economy

Geopolitical Power
Demographics
Shift
https://www.worldometers.info/world-population/malaysia-population/

34,337,000
https://www.worldometers.info/world-population/malaysia-population/

1.09

1.77
CAUSES OF LOW BIRTH RATE

1 Increasing cost of childcare

2 Changing social norms

2 Changing social norms
 io/japanese-workforce-statistics/#:~:text=The
of%20Japan's%20workforce,of%20its
20by%202040

• Example of countries that have experienced significant demographics

and their impact on the economy
• 14. It’s estimated that Japan will lose 20% of its workforce by 2040.
• Employment rates in Japan show that the workforce will shrink by one-fifth in the next 20 years. Many years of declining birth
rates in Japan and subsequently aging population mean that about 12 million people will become too old to work by 2040.
• 11. People aged 45–54 make up the largest portion of the Japanese workforce.
• In Japan, the labor force participation rate among middle-aged people is high. In fact, about 16.3 million people between the ages
of 45 and 54 participate in the labor force. This accounts for about 25% of the entire workforce and is the largest age group
actively employed in the country.
• 12. About 76% of Japanese employees aged 65 and older have non-regular employment.
• Employment statistics in Japan indicate that older employees are more likely to be part-time, seasonal, or contract-based. Young
people, on the other hand, are more likely to hold regular full-time positions, as only 23% of employees aged 25–34 are in non-
regular jobs.
• 1. The Japanese labor force currently comprises around 68–69 million people.
• In Japan, labor market figures for 2021 show that 68.6 million people were employed, down from 68.7 million people in 2020. This accounts for
approximately half of the population of Japan. Despite the country’s aging population, the labor force increased by more than half a million people
between 2000 and 2020.
• Japan has a population of about 125 million people, and the number has been steadily declining since the early 2000s.

• addressing Japan's Demographic Problem

• Demographics is a chronic social and economic problem for Japan. Since the 1970s birth rates in Japan have plunged.7 This means fewer young people are
entering the labor force leading to a decline in the country's productive potential.
• The lack of young people, combined with very long lifespans, creates a very unfavorable dependency ratio. That's ratio of people paying into the country's social
security fund to the number of retired people collecting from it. As a result, the social security fund runs deficits, which the Japanese government must cover
from its fiscal budget. For instance, the 2022 fiscal budget allocates 660 billion yen to make up for a shortfall in the social security fund, up from an initial estimate
of 480 billion yen.8 This shortfall is covered by issuing debt, and Japan's national debt is currently at 266% of GDP, the highest ratio in the developed world9
• But addressing demographic problems isn't something that can be addressed quickly or easily. It requires structural changes to the Japanese economy and
immigration system.10
• The Times, "Panic looms over Japan’s plummeting birth rate,"
Economy
GDP
 Gross Domestic Product
measures the monetary value of final goods
and services produced in a country in a given
period of
timeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee
eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee
eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee
eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee
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Gross Domestic Product

COFFEE

$1 $2
Gross Domestic Product

X 365 days
$1 $2
 https://onlinelibrary.wiley.com/doi/10.1111/padr.12469

Population

GDP Growth
 https://onlinelibrary.wiley.com/doi/10.1111/padr.12469

Population

GDP Growth
https://www.statista.com/statistics/862634/malaysia-labor-force-by-age/#:~:text=In%202021%2C%20there%20were%202.79,between%2030%20and%2034%20years.

15 - 34
35 - 49
50 - 64
16%

33%

51%
 https://www.dosm.gov.my/portal-main/release-content/current-population-estimates-malaysia-2022

0.4% 0.1% 0.3%

 https://www.dosm.gov.my/uploads/release-content/file_20230510164730

LOW BIRTH RATE

INCREASED LIFE EXPECTANCY

 https://www.dosm.gov.my/portal-main/release-content/current-population-estimates-malaysia-2022

UN – Aging society
 https://www.dosm.gov.my/uploads/release-content/file_20230510164730

2023
7.5% of population aged >65%
https://asianews.network/close-china-ties-will-
lift-malaysias-economy-and-anwars-standing/
• How Geopolitics tie into economy
Geopolitics
Geopolitics
Peace and love

Money
Geopolitics
MALACCA STRAIT
 https://warsawinstitute.org/china-malacca-dilemma/

20% of global trade

60% of trade
https://warsawinstitute.org/china-malacca-dilemma/
 Could Malaysia be
INFLUENCED?
 INFLUENCED?

ECONOMY
BAD ECONOMY
 BAD ECONOMY

LOW BIRTH RATE

LOW BIRTH RATE
LOWER COST OF
RAISING CHILD
 https://www.aia.com.my/en/what-matters/finance/cost-of-raising-a-child-in-malaysia.html#:~:text=If%20you
%20choose%20a%20babysitter,not%20including%20accommodation%20and%20food.

BIRTH CHILDCARE

EDUCATION
 https://www.aia.com.my/en/what-matters/finance/cost-of-raising-a-child-in-malaysia.html#:~:text=If%20you
%20choose%20a%20babysitter,not%20including%20accommodation%20and%20food.

BIRTH
Item Government Hospital Private Hospital

Pre-natal Check-ups RM 0 RM 200 per appointment

Normal Delivery RM 60 – RM 2,000 RM 3,000 – RM 6,500

Caesarian Delivery RM 100 – RM 800 RM 11,600 – RM 14,300

Confinement Lady RM 5,000 per month RM 5,000 per month

 https://www.aia.com.my/en/what-matters/finance/cost-of-raising-a-child-in-malaysia.html#:~:text=If%20you
%20choose%20a%20babysitter,not%20including%20accommodation%20and%20food.

CHILDCARE

80+% of Malaysian
parents rely on
third party childcare
 https://www.aia.com.my/en/what-matters/finance/cost-of-raising-a-child-in-malaysia.html#:~:text=If%20you
%20choose%20a%20babysitter,not%20including%20accommodation%20and%20food.

CHILDCARE

41% - grandparents
80+%
40% - nanny
RM12,000 per year
https://www.aia.com.my/en/what-matters/finance/cost-of-raising-a-child-in-malaysia.html#:~:text=If%20you
%20choose%20a%20babysitter,not%20including%20accommodation%20and%20food.

EDUCATION

UNIVERSITY
RM 145,000+ per year
 Solutions

Financial aid

Tax benefits
 Tax benefits
France
•provides a family allowance known as "Allocations
familiales“. The amount of the allowance varies based
on the number of children in the family and the family's
income level.
•offers tax benefits for families with children, including
tax breaks and deductions for dependent children,
childcare expenses, and education expenses.
 Tax benefits
Germany:
•Kindergeld: Germany provides a child benefit to
families with children, paid monthly and varies based
on the number of children in the family.
•Elterngeld: Germany offers parental allowance to
parents who take time off work to care for their
newborns. The allowance replaces a portion of the
parent's previous income and can be claimed for up to
14 months.
 NC E
F RA
CE
F RA N
Allocations familiales
Allocations familiales
allowance