We must plan for our ageing society, with AI tips from Taiwan

Malaysia is experiencing a significant demographic shift towards an ageing population but we are so unprepared for it. — rawpixel.com

As much of the world confronts the complex implications of ageing populations, middle-income countries like Malaysia face a particularly difficult balancing act: preparing for the demographic pressures of an aged society without the fiscal space or institutional maturity of more developed economies.

By 2030, an estimated 15% of Malaysians will be aged 60 or over – a milestone that marks the transition to an “aged society”.

With overall fertility rates continuing to decline and life expectancy increasing, the country’s population structure is undergoing a fundamental shift.

Unlike many high-income nations, however, Malaysia is ageing before it has become fully affluent, a dynamic that threatens to amplify labour shortages, economic stagnation, and health system overload.

Taiwan, facing many of the same headwinds, has responded with an assertive and future-oriented strategy – one that places artificial intelligence (AI) at the centre of its longevity planning.

Though smaller in scale, Taiwan’s experience offers practical and timely lessons for Malaysia and other Southeast Asian economies navigating the challenges of population ageing in the digital age.

Technology not as a fix, but as infrastructure

In recent years, Taiwan has embedded AI into the heart of its public service delivery model, particularly in the care economy.

The government’s AI Taiwan Action Plan and AI Basic Act have paved the way for a cross-sectoral push involving healthcare, labour policy, urban design and elderly care.

This includes investment in smart home technologies, AI-enabled telemedicine, fall detection systems, and cognitive health tools designed to delay dementia and promote social interaction among older adults.

At the same time, Taiwan’s “10-minute care circle” model – where essential services are located within walking distance for elderly residents – is being reinforced by AI-powered logistics and remote monitoring platforms.

These initiatives reflect a deeper principle: technology must not be a bolt-on, but a core part of the social infrastructure required for an ageing population.

Malaysia’s equivalent efforts remain more fragmented.

Digital health initiatives exist, but are typically pilot-based, with uneven adoption across states and districts.

A national AI-in-ageing strategy, explicitly linked to healthcare reform, urban planning and human capital policy, could provide the structure currently lacking.

Reframing older adults as economic actors

A second lesson lies in how Taiwan views its older population – not merely as dependents, but as contributors.

Labour-force participation among Taiwanese aged 65 and above, while still modest, exceeds that of most regional peers.

Public policies incentivise phased retirement, part-time reemployment and reskilling opportunities for older workers.

Many Malaysians, by contrast, still view retirement as an exit rather than a transition.

Our Employee Provident Fund (EPF) system was not designed for the longevity most Malaysians can now expect.

At the same time, the national average savings balance at retirement remains dangerously low.

A 2023 EPF report found that approximately half of members under the age of 55 had less than RM10,000 saved.

Ageing should not be treated as a looming crisis, but as a structural transition. — Pixabay

AI can play a role here, too.

From intelligent job-matching platforms to modular, AI-driven upskilling tools, there is scope to create flexible pathways for seniors to remain economically engaged.

The key is to shift policy incentives – from exit to extension – and to build digital tools that support this transition.

AI adoption requires trust, not just tools

Perhaps the most subtle insight from Taiwan’s experience is cultural: technology uptake depends as much on trust and usability as it does on innovation.

Studies among older Taiwanese show high interest in AI tools, tempered by concerns over data privacy, surveillance and replacement of human contact.

Taiwan’s approach has been to build user trust through public education, community workshops and policy clarity on how data is handled.

Malaysia needs to follow suit.

With its highly diverse population and digital literacy gaps, trust will be a determining factor.

National campaigns that introduce AI tools in a practical, culturally sensitive manner – across languages and communities – will be essential.

Digital inclusion must become a core part of both ageing and AI policy.

Just as important is regulation.

Legislation must include clear protections on data transparency, opt-in consent and explanations in high-risk use cases such as health monitoring.

If Malaysia is to adopt AI across sensitive domains like eldercare, it must ensure legal frameworks keep pace.

Turning challenge into competitive advantage

Malaysia’s window of opportunity is short but real.

If we can act early, we have the potential to turn our demographic challenge into a new wave of economic and social innovation.

The so-called “silver economy” – ranging from elderly care robotics to financial services for retirees – is a US$15 trillion (RM63.5 trillion) global opportunity by 2030, according to the Asian Development Bank.

With a young tech sector, a growing middle class and a robust health tourism industry, Malaysia is well positioned to capitalise – provided it makes ageing a national priority.

A whole-of-government approach that coordinates ministries and agencies such as the Health Ministry and Malaysia Digital Economy Corporation (MDEC) alongside entities such as EPF, local governments and the private sector will be essential.

This will require political will, but also narrative change.

Ageing should not be treated as a looming crisis, but as a structural transition – one that, with the right mix of policy and innovation, can lead to a healthier, more inclusive and productive society.

Taiwan’s story shows that the integration of AI into longevity planning is not only possible – it is practical.

For Malaysia, the alternative is to wait, underprepare and find ourselves overwhelmed by the demands of a demographic shift we knew was coming.

There is still time to choose the wiser path.

Dr Helmy Haja Mydin is a consultant respiratory specialist and a board member of Malaysia Digital Economy Corporation. For further information, email [e-mail]. The information provided is for educational and communication purposes only. The Star does not give any warranty on accuracy, completeness, functionality, usefulness or other assurances as to the content appearing in this column. The Star disclaims all responsibility for any losses, damage to property or personal injury suffered directly or indirectly from reliance on such information.