Subsidised but sustainable childcare should be the emphasis of government policy

SHAH ALAM - Starting a family is not all about the time commitment and responsibility. But, partners have to bear in mind that cost should be above all those matters, especially when children start to get into the picture.

According to AIA Insurance, the total cost to raise a child in Malaysia could reach levels of between RM400,000 and RM1.1 million, depending on how the money is spent for education.

As a breakdown from the amount, it was estimated that the annual bill amounts to RM12,000 per year if parents choose babysitters or nannies for child care services, while if they employed a live-in domestic helper, it could cost up to RM22,400 in the first year, with accommodation and food excluded.

On top of that, parents have to spend RM8,000 to RM18,000 for the one-time cost of using a domestic helper agency.

Therefore, realising the high cost of childcare, the government had taken into consideration subsidising private women workers for child care purposes, thus ensuring more women can work after giving birth.

This initiative eventually received a positive response from All Women’s Action Society (AWAM) which they understood of the significant expenses parents had to bear in raising children.

Speaking to Sinar Daily, its Information and Communication Officer Amanda Shweeta Louis said this initiative will help parents’ ability to focus on their career development as well as improving their financial stability.

Nevertheless, she said this initiative might not be sustainable in the long term, despite heading in the right direction.

“The Government needs consistent monitoring to ensure that improvements can be made so that all classes of people are able to benefit from this subsidy.

“To conclude, this initiative is indeed a crucial step towards supporting families with young children and promoting their well-being,” she said.

Apart from subsidising the child care, Awam further suggested the government include childcare items in the price control list.

“Basic necessities for babies such as baby products, food, disposable diapers and milk have fluctuating prices and its cost tends to take a heavy toll on parents.

“By including childcare items in the price control list, the government can regulate the prices of these items, making them more affordable for families,” she said.

Furthermore, keeping up with the current economic development, it was crucial for the government to increase the minimum wage from Rm1,500 to a more substantial amount.

Thus, women would have more disposable income to spend on childcare and allow them to provide better and high-quality care for their kids.

“This would lead to better outcomes for both women and their families as they are able to participate in the workforce and achieve economic stability,” said Amanda.

Adding up from the government’s initiative, Amanda also highlighted how the private sector played a role in this situation where they could offer more flexible working arrangements or provide on-site childcare services or subsidies for off-site childcare.

Previously, local media reported that the government is currently considering providing subsidies to private women workers to ensure they come back to work after giving birth.

It was raised by the Women, Family and Community Development Deputy Minister Aiman Athira Sabu during the winding-up session of Supply Bill 2023 at Dewan Rakyat.