What can M'sia learn from Japan’s super-aged society
Japanese Embassy in Malaysia's First Secretary and Health, Labour and Welfare Attache Miyasaka Tomoyuki says Malaysia's ageing society is growing at the same rate as Japan
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SHAH ALAM - Malaysia is ageing at the same alarming rate as Japan, according to Japan Embassy in Malaysia.
Its First Secretary and Health, Labour and Welfare Attache Miyasaka Tomoyuki said Malaysia was declared an “Ageing Society” in 2020 with seven per cent of its population aged 65 years and above.
The country will become an “Aged Society” by 2044 with 14 per cent of its population above 65 years old and a “Super-Aged Society” in 2056 once 21 per cent of the population is above 65 years old, based on a report published by the World Bank in 2020.
"Looking at the report, Malaysia is running 50 years behind Japan but will be ageing at the same rate as Japan," he told Sinar Daily.
He added Malaysia needs to manage its ageing society to ensure people had proper care and sufficient money after retirement.
Japan is known as one of the fastest ageing countries in the world, hitting “Super-Aged Society” in 2007, Miyasaka said.
Japan started development and welfare programmes for seniors when the ageing population was at just 5.7 per cent in the 1960s by establishing intensive care homes and laws on home helpers for the elderly, he said.
In the 1970s, when it reached 7.1%, the government established short-stay and daycare services, and in the 1980s, when the ageing rate reached 9.1%, the government enacted the Health and Medical Service Act.
In the 1990s, a Long-Term Care Insurance Act was enacted, which continues to present day to ensure stable operation in the future and is reviewed five years, Miyasaka added.
Under the Long-Term Care Insurance Act, it is mandatory for those above 40 to be enrolled in the insurance system and the contributor pays 10 per cent of the cost while the remainder is borne by the local authority.
He said the service providers were private entities approved by the local authorities and those requiring long-term care were assessed based on a basic survey, a doctor’s written opinion and a review board.
Japan has a population of 125 mil people and with 29 per cent aged above 65 years, the number of residents requiring long-term care has increased three times to 6.59 mil in 2019 as compared with 2000.
Malaysia's EPF has high returns but inadequate for old age
The Japanese also has a pension system where everyone above 20 year pays a contribution till 60. "Upon retirement, each contributor receives a monthly pension," Miyasaka said.
He added that Malaysia's Employment Provident Fund (EPF) has high returns but most of its contributors do not seem to have sufficient savings for their retirement at 60.
Social Security Organisation (Socso) in 2019 had set a new minimum of RM240,000 as the new minimum target for basic savings EPF members should have upon reaching age 55, but Miyasaka said most may not have that amount as the retirement age was at 60 and would need at least RM3,090 monthly for the next 15 years.
The average life expectancy in Malaysia is 75.
"More reserves and a continuous source of income might be needed," he added.
He stated that although Malaysia was running 50 years behind Japan, it did not have much time to deal with ageing issues and should start considering the management of its ageing society.
He said Japan could cooperate with Malaysia under its Look East Policy to manage the increasing ageing society in Malaysia and "we will be pleased to share Japan’s experiences to combat and manage the ageing issue in Malaysia."
