BY: LYNDY ANG

In the span of a decade or a decade and a half, the nation will have an ageing population and this will radically change the equilibrium of life in this country which is why preparations have to be made from now on to face it.

The challenges to this scenario are many because it will drastically affect the economy and gross domestic product (GDP) from this year into the near future and pundits caution that changes have to be made to cater to the unfolding situation.

For starters, consumption patterns are going to change. There is expected to be an uptake on leisure activities and travel which will indirectly cause an increase of productivity in these sectors nationwide.

Healthcare costs will witness the government having to spend more to help the elderly who are less well off and old age poverty both in the urban and rural areas are expected to increase while retirement and nursing homes will mushroom.

While a portion of mature age workers who are healthy will continue to work, most will retire and no longer contribute as taxpayers which will cause a drop in government revenue as fewer people will go to work.

Measures to offset this is to increase the retirement age to allow more people to be in the employment market while automation and digitalization will play key roles to help spur economic growth.

-THE MALAYSIA VOICE

** The views expressed on this opinion is of the writer and not the publisher