Understanding Malaysia’s 1.6 Birth Rate and Its Impact on the Future

Understanding Malaysia’s 1.6 Birth Rate and Its Impact on the Future

Back in August 2015, I wrote about Malaysia’s fertility rate dropping to 1.9.

At that time, I thought it was already something we should pay attention to.

Well, fast forward more than 10 years.

The number is now 1.6.

And suddenly, the issue is no longer just about fewer babies.

It is about how Malaysia will look when more of us become old.

According to the latest Department of Statistics Malaysia (DOSM) data, Malaysia recorded 414,918 live births in 2024, down 9% from 455,761 in 2023. This was the lowest number of live births since 1980. The crude birth rate also fell from 13.6 to 12.2 births per 1,000 population.

And the total fertility rate fell from 1.7 children per woman in 2023 to just 1.6 in 2024. Replacement level is generally around 2.1.

So yes, the direction is pretty clear.

Fewer babies. Older population.

WHAT HAS CHANGED SINCE 2015?

When I wrote the original article, Malaysia was still a relatively young country.

Today, the demographic structure is changing.

DOSM’s 2026 population estimate puts Malaysia’s population at 34.4 million, but the more interesting number is the age structure.

Those aged 65 and above now make up 8.4% of the population, compared with 8.0% in 2025.

Meanwhile, children aged 0–14 fell from 21.6% to 21.2%. The working-age population remains at 70.4%.

This means that even though Malaysia’s total population is still growing, the composition of the population is changing.

And that is a very different story.

WE ARE ALSO LIVING LONGER

There is another side to this.

Living longer is obviously good news.

DOSM’s latest life-expectancy data shows Malaysians born in 2024 can expect to live about 75.2 years on average, with females at 77.8 years and males at 73.0 years.

So imagine this.

You retire at 60.

You may have another 20 years or more to fund.

For some people, it could be 30 years.

That is a long retirement!

And this is where our personal finances become very important.

THE EPF QUESTION

We often talk about having RM100,000, RM300,000 or RM500,000 in EPF as though reaching the number means we are done.

But perhaps the better question is:

How many years can that money support us?

If we live longer, our retirement savings need to last longer.

And if our children are fewer, can we assume they will be able to support us?

Maybe.

But I don’t think we should plan our retirement based on that assumption.

Our children have their own mortgages, children, education costs and retirement to worry about.

In other words, our retirement should be our responsibility.

AND WHAT ABOUT HEALTHCARE?

This is another big issue.

An ageing population means more demand for healthcare, chronic disease management, elderly care, rehabilitation and long-term care.

We may also need more retirement-friendly housing.

Not necessarily huge 2,000 sq ft houses.

Perhaps smaller homes with lifts, wider walkways, nearby healthcare, public transport and shops within easy reach.

In my 2015 article, I talked about smaller homes because families may become smaller.

I still think that makes sense.

But now I see another opportunity:

homes designed for older people.

That could become increasingly important.

PROPERTY INVESTORS SHOULD PAY ATTENTION TOO

If there are fewer young families, demand for certain types of large family homes may eventually change.

But that doesn’t mean property demand will disappear.

It means the type of demand can change.

A young couple may want a 700 sq ft condo.

A family with three children may want a landed house.

An elderly couple may prefer a smaller, accessible home near healthcare and amenities.

A single elderly person may prefer a serviced apartment with facilities and security.

So demographic changes don’t necessarily mean “property is bad”.

It means we need to ask:

Who will be buying or renting this property 15 or 20 years from now?

That’s a much better question.

WHAT SHOULD WE DO NOW?

For me, there are a few simple things.

First, plan our retirement earlier.

Don’t wait until 55.

Second, don’t assume our children will fund our retirement.

If they help, great. But that’s a bonus, not a retirement strategy.

Third, think about healthcare costs.

Living longer is wonderful. Paying for 20 or 30 years of healthcare needs planning.

Fourth, review our property choices.

The ideal home at 35 may not be the ideal home at 70.

And finally, build multiple sources of retirement income.

EPF. Investments. Property. Cash. Perhaps business income.

No single investment needs to do everything.

THE BIGGER MESSAGE

Back in 2015, I ended my article by saying “think property.”

Today, I would add something else.

Think retirement.

Malaysia’s population is still growing. But underneath that headline, the country is getting older.

The fertility rate is down to 1.6.

Live births have fallen significantly.

The percentage of Malaysians aged 65 and above has reached 8.4%.

And we are living longer.

This isn’t necessarily doom and gloom.

It is simply a different Malaysia.

The question is whether we are financially prepared for it.

Because one day, the children we are talking about today will be the working adults supporting the economy.

And one day, we will be the elderly population everyone is talking about.

Better to prepare now, right?

Happy planning yeah.

This article is for general information and discussion, not financial or property investment advice. Please make your own decisions based on your circumstances.

Sources

• Original article: 2015: Fertility Rate dropped to 1.9 for Malaysia — kopiandproperty.com
• DOSM — Vital Statistics, Malaysia 2025
• DOSM — Current Population Estimates 2026
• OpenDOSM — Annual Live Births
• OpenDOSM — Fertility Rate
• OpenDOSM — Life Expectancy

Stay updated at all time for free. Sign up for daily investment news updates (FREE since Nov 2013 and FOREVER). 

Please LIKE kopiandproperty.com FB page to get daily updates about the property market beyond kopiandproperty.com articles.