Experts warn of effects on economy
PETALING JAYA: Malaysia’s rising mental health burden is increasingly being viewed not only as a public health concern, but also as a looming economic risk.
Economists say the issue is already shaping labour productivity, workforce participation and long-term growth prospects.
Their response followed a statement by Parliament’s Special Select Committee on Health chairman Suhaizan Kaiat on Monday that the economic cost and burden arising from mental health issues is expected to hit RM25.3bil by 2030 if no effective intervention measures are taken to deal with the situation.
He told the Dewan Rakyat that the prevalence of depression among Malaysians aged 16 and above rose from 2.3% in 2019 to 4.6% in 2023.
When contacted, Universiti Teknologi Mara senior lecturer in economics and financial studies Dr Mohamad Idham Md Razak said the RM25.3bil projection reflects a deeper productivity loss problem rather than just healthcare spending.
“The larger and more persistent cost comes from reduced workforce efficiency. Mental health conditions affect cognitive function, decision-making and motivation.”
He said the impact is felt through absenteeism, presenteeism and early workforce exit.
“Absenteeism leads to immediate output loss, while presenteeism can be even more damaging because workers are present but underperforming. Early exits from the workforce reduce the effective labour supply.”
Dr Idham warned that the long-term implication is weaker GDP growth as human capital is not fully utilised.
He also said rising mental health challenges among youths could weaken Malaysia’s human capital pipeline.
Bank Muamalat chief economist Dr Mohd Afzanizam Abdul Rashid said mental health issues should also be seen as a symptom of broader economic and social pressures.
“It could stem from rising cost of living, indebtedness, family issues and social pressures. If we do not identify the root causes, we will only treat the symptoms.”
He added that rapid technological change, job displacement and social media influence are adding new layers of stress on society.
“This is a multipronged issue that requires a whole-of-nation approach involving economic, social and institutional responses.”
He cautioned against overly narrow definitions of success, noting that societal expectations can add to mental strain.
“Success should not only be defined by income. It also involves dignity, knowledge and respect.”
