Malaysia’s ageing future: Falling birth rates raise questions over families, workforce and economy

KUALA LUMPUR, July 23 — Malaysia is projected to attain ‘aged nation’ status by 2048, while it has officially been classified as an ‘ageing nation’ since 2021, with people aged 65 and above accounting for seven percent of the country’s total population.

At the same time, the country has recorded a sustained decline in its live birth rate over the past decade since 2015, interrupted only by a slight uptick in 2023. Data from the Department of Statistics Malaysia (DOSM) shows that the birth rate fell from 16.7 births per 1,000 population in 2015 to just 12.2 in 2024.

According to DOSM, Malaysia also recorded its lowest number of live births in 2024, with only 414,918 births – the lowest annual figure in 44 years since 1980.

The latest data shows that live births in the first quarter of 2026 declined by 3.1 percent to 94,807, compared with 97,843 during the same period in 2025.

DOSM attributes the country’s declining birth rate to changing lifestyles, rising living costs, delayed marriages and a falling total fertility rate (TFR), which is now below the replacement level at 1.6, compared with the ideal rate of 2.1.

(The TFR refers to the average number of children a woman is expected to have over her lifetime during her reproductive years between the ages of 15 and 49.)

Challenges facing working women

Commenting on the declining birth rate, Universiti Sains Malaysia School of Distance Education deputy dean (Academic, Career and International) Dr Nik Norliati Fitri Md Nor said many working women are facing a dilemma.

“The challenges women face after childbirth are not merely personal or family issues. They are closely linked to women’s participation in the labour force and their family well-being, which, in the long term, could influence the country’s fertility trends,” she said.

Elaborating on this, Nik Norliati said women returning to work after childbirth often struggle to balance their careers with family responsibilities as caring for a newborn significantly increases the demands on their time and energy.

At the same time, leaving the workforce to focus entirely on raising a family is not a realistic option for many young couples, given the rising cost of living, which requires both the husband and wife to contribute to the household income.

As a result, some couples choose to plan the number of children they have or space out pregnancies to better balance their parenting responsibilities with their financial capacity, career commitments and overall family well-being.

Further compounding the challenges faced by women are postpartum mental health issues. Some mothers experience emotional distress, anxiety or postpartum depression, which can affect not only their own well-being and that of their families, but also their work performance, productivity and ability to readjust upon returning to the workforce.

Impact of declining birth rate 

Commenting on the implications of Malaysia’s declining birth rate, Nik Norliati said if the trend continues, the country will face significant long-term consequences, particularly in terms of population size.

“A low birth rate does not produce immediate effects, but over the next 20 to 30 years, Malaysia will have a much smaller pool of new entrants into the workforce.

“This could hamper economic growth as labour is a key driver of productivity and national development. As the workforce shrinks, certain industries, especially those that need a large workforce, may face increasing labour shortages,” she said.

In the longer term, she said, the situation could increase Malaysia’s dependence on foreign workers and make it more difficult for the country to transition to a high-income economy driven by productivity and innovation.

“The other thing is that Malaysia is now moving towards an aged nation status. As the number of older people rises and the younger population declines, the dependency ratio will continue to increase.

“This means a smaller working population will have to support a growing number of older people through the tax system, healthcare services and various social protection programmes. From the perspective of the pension and retirement system, the key challenge will be ensuring its sustainability when the number of contributors grows more slowly than the number of people reaching retirement age,” she said.

According to Nik Norliati, these demographic changes could place increasing pressure on public finances and government social spending, particularly on healthcare, long-term care and social security.

“More importantly, this will fundamentally reshape the country’s population structure. Malaysia, which has long benefited from having a relatively young population, will gradually transition to one with a much larger proportion of older people,” she said.

Such demographic shifts will also require adjustments across many sectors, including healthcare, housing, transportation, labour market and social protection systems, she said.

“Hence, declining birth rates should not be viewed solely as a family issue, but as a strategic national challenge with direct implications for economic development, public well-being and the country’s long-term resilience,” she added.

Post-maternity leave allowance 

In this regard, Nik Norliati views the government’s introduction of the post-maternity leave allowance as a critical policy in supporting working mothers during the transition period after childbirth.

“The allowance needs to be seen beyond its welfare aspect. Malaysia is currently facing a declining fertility trend, with the fertility rate at around 1.6 children per woman, which is below the population replacement level.

“Coupled with the country’s aging society, support for young families, particularly working mothers, has become more important as the post-childbirth experience often influences couples’ decisions on whether to have more children in the future,” she said.

The post-maternity leave allowance was announced by Prime Minister Datuk Seri Anwar Ibrahim during his address at the 2026 National Labour Day celebration in May. The initiative aims to support women’s participation in the workforce and reduce the pressures faced by mothers after childbirth.

Administered by the Social Security Organisation (SOCSO), the allowance – comprising 80 percent of the employee’s assumed monthly wage – is a one-off payment for mothers who take an additional 30 days of maternity leave after completing 98 days of fully paid maternity leave.

According to Nik Norliati, the additional 30 days of leave would provide mothers more time to adjust before fully returning to the workforce.

“International studies have shown that adequate support during the postpartum period can help reduce stress arising from work-family conflicts, while supporting mothers’ mental well-being and children’s early development,” she said.

Other measures

Describing the post-maternity leave allowance as a positive first step towards creating a more family-friendly ecosystem, Nik Norliati said the policy would be more effective if supported by other measures, including quality and affordable childcare facilities, flexible working arrangements, breastfeeding support at workplaces and greater involvement of fathers in childcare.

She said while financial support could ease some of the immediate burden, it might not be sufficient to address the long-term concerns faced by young families.

“Many other countries’ experiences show that effective family policies usually involve a combination of various forms of support, such as adequate parental leave, quality and affordable childcare facilities, flexible working arrangements, employment protection after childbirth and continuous support for working parents.

“When these elements are present simultaneously, couples will have greater confidence in planning their family life without viewing having children as a risk to their financial stability or career development. In the Malaysian context, the post-maternity leave allowance can be seen as a progressive step as it reflects the government’s commitment to supporting working mothers during the critical period after childbirth,” she said.

Learning from other countries 

Nik Norliati said several countries have successfully increased women’s workforce participation while also encouraging fertility rates through various forms of family support.

She said Malaysia could look to countries such as Sweden, France, Germany and South Korea, which provide extensive support for parents, including paid parental leave, family allowances, childcare subsidies and employment protection after childbirth.

“The experience of these countries shows that continuous support for families can help women remain in the workforce even after having children. Western European countries, for example, have focused on reducing the cost of raising children through the provision of childcare subsidies, early childhood education facilities and employment protection during the parenting period.

“South Korea, meanwhile, has strengthened employment protection and introduced various incentives to encourage women to return to work after childbirth. Although each country has different social and economic contexts, one clear similarity is that they do not rely solely on financial assistance. Instead, they have developed ecosystems that enable parents to balance family responsibilities and careers,” she said.

Meanwhile, commenting on the post-maternity leave allowance, administrative assistant Nur Izzati Mamat, 33, said it is a commendable initiative that could ease the burden on new mothers, adding that flexible working arrangements and understanding employers were equally important in supporting working mothers.

“Sometimes, mothers do not necessarily need longer leave, but they need some flexibility when dealing with matters involving their children or family emergencies,” she said.

Nur Izzati, who has four children aged between two and 10, took a year of unpaid leave beginning April last year to care for her young children, who still required considerable attention and support.

“Financially, we lost one source of income and had to practise tighter budgeting. From a career perspective, I had to accept that my career progression slowed down slightly because I was away from work for quite a long period,” she said. — Bernama