Experts call for higher elderly aid, flexible eligibility and better retirement planning
PETALING JAYA: Malaysia’s elderly assistance scheme could be strengthened through higher monthly payments, more flexible eligibility and better retirement planning, experts said, while stressing the need to keep public spending sustainable.
Putra Business School MBA and DBA director Prof Dr Ahmed Razman Abdul Latiff proposed gradually raising the monthly Bantuan Warga Emas (BWE) payment from RM600 to between RM800 and RM1,000, subject to the government’s fiscal capacity.
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He said the increase would help financially vulnerable senior citizens meet essential expenses, particularly those living alone or without a stable income or family support.
“RM600 a month is still rather low to cover food, housing, utilities, transport and healthcare costs for elderly people, especially those living alone.
“I believe assistance should be increased gradually to around RM800 to RM1,000 a month, depending on the government’s fiscal capacity,” he told theSun.
Ahmed Razman said payments could also be adjusted for inflation. He called for eligibility rules to take account of people who exhaust their retirement savings before they can access assistance.
“Elderly people who exhaust their retirement savings at 60 or 65 should be considered for assistance earlier, without having to wait until 70 or 75.
“Eligibility should be based on an assessment of income, savings, assets and basic needs, not age alone,” he said.
Rather than create a new scheme, he suggested expanding BWE and using data from the central database hub, Employees Provident Fund and the Social Welfare Department to identify eligible recipients more effectively.
He added that proactive registration could help reach older people living alone or those who struggle with digital applications.
Ahmed Razman proposed introducing any increase in stages, using savings from targeted subsidies, reduced leakages and more efficient public spending.
He said development spending should be protected and additional debt avoided. Malaysian Institute of Economic Research and Universiti Malaya Social Well-being Research Centre senior research fellow Dr Zulkiply Omar favoured a different approach: assistance based on age without means-testing.
He said it would simplify administration and widen access.
“Targeted income support for the elderly should be provided according to age, not need.
“This method is more efficient because there is no requirement to prove eligibility, which is vulnerable to shortcomings and involves costs.”
Zulkiply said setting the qualifying age at 70 or 75 could encourage Malaysians to remain in the workforce beyond retirement age as life expectancy rises.
He added that age-based coverage could reduce the risk of eligible seniors missing out and avoid the stigma of having to prove financial need.
The assistance was intended to provide a basic income floor, not cover every expense, he said. Savings on administration could help fund a wider programme.
“Savings from administrative costs and exclusion errors can be channelled into this assistance,” he said, adding that BWE could be expanded to include universal elements. Beyond direct aid, SocioEconomic Research Centre executive director and economist Lee Heng Guie called for longer-term measures to improve retirement income and help older Malaysians remain financially independent.
“Early preparation is the most critical factor in securing retirement adequacy. Relying solely on government safety nets is rarely enough,” he said.
Lee proposed a shift away from lumpsum retirement withdrawals towards income paid throughout retirement, alongside more employment opportunities for older workers.
“Addressing barriers like mandatory retirement, rigid seniority pay and lack of flexibility is essential for boosting employment in aging societies.
“Combined with targeted digital and life-long skills training, these policy shifts allow senior workers to remain productive, engaged and financially secure.
“Annuities and reverse mortgages can allow individuals to convert existing assets into additional retirement income, reducing the need to draw on the government’s financial support.”