LocationsStrengthening the ‘Care Economy’ brings economic gains, gender equality: UNDP report calls for shared public and private sector responsibility
July 5, 2024
Kuala Lumpur, 5 July 2024: The United Nations Development Programme (UNDP) in partnership with the Ministry of Women, Family and Community Development (KPWKM) today launched a report on “Enabling Investments into the Malaysian Care Economy”. The report summarises key measures that can encourage the growth of a Public-Private-Philanthropic partnership to drive an equitable, sustainable, and resilient Care Economy for Malaysia.
Ministry of Women, Family and Community Development’s (KPWKM), Secretary General Datuk (Dr) Maziah Che Yusoff; UNDP in Malaysia, Singapore and Brunei Darussalam Resident Representative Mr. Niloy Banerjee and Dr. Haniza giving their remarks on the newly launched Care Economy report.
UNDP’s SDG Investor Map assessment for Malaysia, launched last June in collaboration with the Ministry of Investment, Trade and Industry (MITI), has identified the Care Economy as an investment opportunity area that is highly aligned to the social and development needs of the country. However, most of the population’s care burden today is borne by family members or overstretched government agencies, while private sector involvement is characterised by low investment momentum, due to the high-cost, low-revenue business models most care-related centres operate under.
In Malaysia, the demand for care is expected to rise as the nation moves towards becoming an aged society by 2044 (with more than 14 per cent of the population aged above 65) and a super-aged society by 2056 (with more than 20 per cent aged above 65). Additionally, it is estimated that 29.2 per cent of the population aged 16 years and above suffered from various manifestations of mental health issues in 2015, rising almost three-fold from an estimated 10.7 per cent in 1996.
This indicates a rise in demand in the market for respite care, hospice, palliative care provisions, as well as a gap in specialised care facilities and care workers.
Dr. Alizan, Senior Economist of UNDP Malaysia moderating a panel session.
To meet the country’s care challenges, the research calls for an enabling ecosystem, consisting of policy and regulatory, workforce, and financing pillars. The desired outcome is increased investment in the Care Economy, which in turn will result in significant dividends for the country. Such benefits include improving productivity across all sectors, as more women are able to join the workforce with better care options for the family. At the same time, it will reduce the nation’s reliance on hospitals and clinics, as better care at home can mean lower incidences of preventable falls or injury at home.
The report also asserts that the depth and breadth of the Care Economy can be extended in various ways such that the industry can become a substantial source of economic growth, employment, and income generation for the people.
Various empirical studies have demonstrated that expanding the Care Economy yields positive economic returns for the country, including increased GDP, job creation, and higher income levels.
With greater market competition and innovation, private care solutions will also settle at a more affordable price point in the long run.
“This will lead to increased workforce participation by women, benefit the economy through the expansion of its economic outlook, and create the possibility of exporting Malaysia's care professionals regionally and internationally,” said Datuk Dr Maziah binti Che Yusoff, Secretary General of the Ministry of Women, Family and Community Development, who delivered the keynote address at the launch of the report.
UNDP in Malaysia, Singapore and Brunei Darussalam Resident Representative Mr. Niloy Banerjee and Dr. Haniza present the report to Ministry of Women, Family and Community Development’s (KPWKM), Secretary General Datuk (Dr) Maziah Che Yusoff.
To this end, UNDP and KPWKM are planning to collaborate further to help build a strong enabling ecosystem supporting the Care Economy and accelerate its transformation into a thriving and robust economic sector.
