This article highlights Malaysia's challenges as it transitions into an ageing society, emphasising the need for robust fiscal planning to ensure the sustainability of its social protection and healthcare systems.
Key points include:
Demographic Shift: Malaysia became an ageing society in 2021, leading to increased demand for healthcare and social protection.
Weaknesses in Public Financial Management (PFM): The current framework suffers from short-term planning, unclear institutional responsibilities, insufficient retirement savings and a lack of a national ageing strategy.
Recommendations: The authors, Prof Datuk Norma Mansor and Dek Joe Sum, propose strengthening the PFM framework by integrating social protection and health spending into a medium- and long-term fiscal strategy. This includes enhancing the medium-term fiscal framework (MTFF) with sector-specific forecasts, institutionalising analytical tools, and expanding the role of the Malaysian Social Protection Council (MySPC) with a legal mandate.
Conclusion: Proactive measures are essential for Malaysia to manage demographic changes and maintain fiscal sustainability, ensuring its citizens can age with dignity. Read the full article here: https://theedgemalaysia.c om/node/760760