KUALA LUMPUR: The increase in the Senior Citizens Assistance allocation to RM1.3bil, along with measures to reduce care costs under Budget 2027, is a crucial effort to strengthen elderly welfare as Malaysia transitions into an ageing nation.
Universiti Kebangsaan Malaysia (UKM) School of Accounting, Economics and Management Faculty lecturer Dr Kamarul Baraini Keliwon said the increased financial assistance must be supported by a sustainable retirement system and long-term care financing to ensure senior citizens are not burdened by living costs after retirement.
She said a study of 3,034 individuals aged 50 and above revealed that 45.7% had no retirement plan. This underscores the urgent need to strengthen public financial preparedness for old age.
She suggested that, in addition to financial aid, the government could introduce a tax-funded social pension to help elderly individuals who lack a government pension or have insufficient retirement savings.
"The government could introduce a tax-funded social pension. This proposal could address the shortcomings of the accumulated contribution model under the Employees Provident Fund (EPF).
"This tax-funded social pension would not draw a single cent from an individual's EPF savings. It would be funded entirely through national fiscal expenditure or tax revenue," she told Bernama.
Commenting on the government's measure to reduce the service tax rate for elderly care from 8% to 6% from Jan 1, 2027, and providing a full tax exemption on care fees up to RM96,000 annually, Kamarul Baraini said a long-term care financing framework must be formulated so costs are not borne solely by families.
The UKM Centre for Shaping Advanced and Professional Extension (UKMSHAPE) deputy director 1 (academic and programme extension) proposed a blended financing model involving the government, private sector, and community, and expanding tax relief for parental care expenses, including home care services and day care centres.
Universiti Teknologi Malaysia (UTM) Industrial and Organisational Psychology expert Prof Dr Siti Aisyah Panatik said increasing senior citizen assistance to RM1.3bil for nearly 200,000 recipients, along with over RM40mil to train 8,000 care workers, reflects clear attention to the welfare and needs of the group.
She said efforts to enact the Senior Citizens Bill would strengthen protection against neglect and develop a more comprehensive care ecosystem.
However, Siti Aisyah stressed that these initiatives' effectiveness hinges on accessible, high-quality implementation that meets the needs of senior citizens, particularly those without pensions, living alone, low-income earners, or individuals with physical limitations.
"Financial assistance is vital, but it must be integrated with healthcare, long-term care services, suitable transportation, and community support," she said.
She added that care worker training must also encompass the psychological aspects of ageing, empathetic communication, respect for personal choices, managing dementia-related needs, and preventing neglect. - Bernama
