Super Low Baby Production in Malaysia… End of Investment?

Super Low Baby Production in Malaysia… End of Investment?

When I wrote the original article in 2024, I was looking at one worrying number:

Malaysia was having fewer babies.

At that time, the number of live births in the second quarter had fallen by 10.2%.

I thought it was something worth watching. Now we have the full-year numbers.

And honestly, oh dear indeed.

#1 – Malaysia is having fewer and fewer babies

Malaysia recorded 414,918 live births in 2024.

That was down 9.0% from 455,761 births in 2023.

More importantly, according to the Department of Statistics Malaysia (DOSM), this was the lowest number of live births recorded since 1980. 

That’s quite a long time.

And the fertility rate is also falling.

Malaysia’s Total Fertility Rate (TFR) dropped from:

1.7 children per woman in 2023

to

1.6 children in 2024.

The replacement level is generally around 2.1 children per woman.

Malaysia has been below that level since 2013. So this isn’t a one-year problem.

It has been happening for more than a decade.

#2 – Why should we care?

Someone may say:

“Charles, fewer babies? Great lah. Less traffic. Less congestion. Less pressure on schools.”

Maybe.

For parents, having fewer children may also mean more money and attention available for each child.

So fewer babies isn’t automatically bad for every individual family.

But when we look at Malaysia as an economy, the story becomes different.

Babies today become:

Students tomorrow.

Workers after that.

Consumers.

Taxpayers.

Business owners.

Homebuyers.

Parents themselves.

If the number of young people keeps shrinking, the impact eventually moves through the entire economy.

Think about universities.

If there are fewer 18-year-olds, fewer students will need university places.

Some universities may struggle.

Then think about childcare.

Fewer babies means fewer childcare centres.

Then schools.

Then entry-level jobs.

Then eventually the housing market.

If there are fewer households being formed, the demand for certain types of homes could also change.

This doesn’t happen next year.

But perhaps 15–20 years from now, we could see a very different Malaysia.

That was my concern when I wrote the original article.

And I think the latest numbers make the concern even more relevant.

#3 – It’s not just about Chinese Malaysians

This is something I want to correct from the way we sometimes discuss this topic.

Whenever the conversation turns to Malaysia’s declining population, someone will quickly say:

“Chinese Malaysians are having fewer babies.”

Yes, the Chinese TFR is very low.

It was just 0.9 children per woman in 2024.

But here’s the bigger story:

Every major ethnic group is now below replacement level.

Malay TFR was 1.9.

Other Bumiputera was 1.6.

Indian was 1.1.

Chinese was 0.9.

So this is no longer simply a Chinese Malaysian issue.

It is a Malaysian issue.

And that’s important.

#4 – Why are Malaysians having fewer children?

I don’t think there is one answer. Typical answers? Housing is expensive. Childcare costs money.

Education costs money. Cars cost money. Healthcare costs money.

Parents want to give their children a better life.

And both husband and wife may be working.

Then there is another issue:

Time.

Having children isn’t simply about paying for milk and diapers.

It means changing our lifestyle. Less sleep. More responsibility. Less flexibility.

And if both parents are working, someone has to take care of the children.

So when young couples look at the equation, perhaps they say:

“One child is enough.”

Or:

“Let’s wait first.”

Then they wait.

And suddenly they are 35.

Then 38.

Then 40.

The biological clock doesn’t wait for the housing market or our bank account to become comfortable.

#5 – Incentives alone may not solve this

This is where I remain slightly sceptical.

Governments around the world have tried baby bonuses, tax incentives, childcare subsidies and other measures.

Singapore has done it. South Korea has done it. Many European countries have done it.

Yet some continue to struggle with very low fertility.

Why?

Because money isn’t the only reason people decide whether to have children.

If a young couple says:

“We can’t afford RM100,000.”

Giving them RM5,000 doesn’t necessarily change the decision.

Perhaps what they need is affordable childcare.

Flexible working arrangements.

More family-friendly workplaces.

Affordable housing.

More support from grandparents.

And perhaps a culture where having children doesn’t automatically mean that one parent has to sacrifice an entire career.

Malaysia needs to think about the whole ecosystem.

Not just:

“Here’s RM5,000. Please have another baby.”

Haha.

#6 – And here comes AI

This is where the discussion becomes even more interesting for me. What happens if Malaysia has fewer workers?

Maybe AI helps. Automation helps. Robotics helps.

Technology allows one worker to produce what previously required three workers.

That’s possible.

But there is another side.

AI doesn’t buy houses.

AI doesn’t go on holidays.

AI doesn’t send children to university.

AI doesn’t open a new restaurant because it wants to celebrate its anniversary.

Humans are still consumers.

So even if AI helps us maintain productivity with fewer workers, we could still have a smaller domestic consumer market.

And that’s where the population issue becomes an economic issue.

#7 – Property investors should pay attention

Of course, I have to bring this back to property.

Haha. Imagine Malaysia 20 years from now.

Suppose there are fewer young adults forming households.

What type of property will they want?

Perhaps smaller homes. Perhaps homes near public transport. Perhaps rental homes.

Perhaps homes designed for older people.

Meanwhile, some areas may have too many large houses because the children have grown up and moved away.

SO, should we panic?

No. I don’t think we should panic.

But we should pay attention.

Malaysia had 414,918 babies in 2024, the lowest annual number since 1980. The fertility rate is now 1.6, well below the 2.1 replacement level. 

At the same time, people are living longer. That means Malaysia is gradually moving towards an older population.

Fewer young people. More older people. That changes everything.

Healthcare. Retirement. EPF. Housing.

Education. Jobs. Taxes.

Consumer spending.

And yes, property.

I have two children.

So when I look at this issue, I don’t only see a statistic.

I think about what Malaysia will look like when my children are adults.

Will there be enough workers?

Enough taxpayers?

Enough doctors?

Enough caregivers?

Enough businesses?

Enough young families buying homes?

I don’t know.

But I do know one thing.

Demographics move slowly.

Once a baby isn’t born today, we cannot suddenly create a 20-year-old worker tomorrow.

That’s why this issue deserves attention now.

Not when the problem becomes obvious.

Because by then, it may already be too late to change the direction quickly.

So yes…

Maybe AI will help.

Maybe some immigration will help.

Maybe better family policies will help.

Maybe our younger generation will eventually decide to have more children.

Hopefully.

But for now, I think we should simply recognise that Malaysia is becoming an older country with fewer babies.

And that will change the Malaysia we know today.

Including the property market.

Interesting times ahead indeed.

Happy understanding.

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Sources

• Department of Statistics Malaysia — Vital Statistics, Malaysia 2025 — official 2024 birth, death and fertility data. 
• Bernama — Malaysia Records Lowest Number Of Live Births Since 1980 — report on the 414,918 births recorded in 2024. 
• DOSM — Vital Statistics 2025 report PDF — historical fertility-rate data and the 2.1 replacement-level comparison. 
• Bernama — Falling Birth Rate Highlights Need For Stronger Family Support Ecosystem — 2026 discussion on Malaysia’s declining birth rate and family-support policies. 
• Original Kopiandproperty article — “Super low baby production in Malaysia… Oh dear” — the original article and personal observations used as the basis for this refresh. 