Malaysians may be asked to retire five years later at 65 but should be spared any sharp tax rises in Friday’s budget, economists say, as Prime Minister Anwar Ibrahim faces an economy hampered by an ageing population, high youth joblessness and surging living costs at the halfway point of his administration.
About 8 per cent of Malaysia’s 34 million population are aged 65 and older, according to government data, firmly placing the Southeast Asian nation in the ageing nation category.
At the same time, youth unemployment remains stubbornly high, with 10 per cent of Malaysians aged between 15 and 24 struggling for work.
With a rapidly ageing nation and fewer young workers replacing them, experts warn of a lower tax base, depleted retirement funds and a future where young people are unable to pay for their own retirement.
On Friday, Anwar will lay out his budget for 2026 in parliament, aiming to placate voters squeezed by rising living costs and fearing for their futures as the value of pensions shrinks and global economic forecasts dim.
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