Page 117 - IJPS-11-4

International Journal of
Population Studies Intergenerational transfers in Malaysia

Table 6. (Continued)
Variable Coefficient Standard error t‑statistics
Income group
<RM 1,000 (reference)
RM 1,000 – RM 1,999 0.298 c 0.059 5.071
RM 2,00 – RM 2,999 0.470 c 0.080 5.886
More than RM 3,000 0.858 c 0.081 10.644
Received government financial assistance
No (reference)
Yes 0.017 0.064 0.257
C 4.645 c 0.154 30.235
Note: ap<0.10, bp<0.05, cp<0.01.

Nevertheless, although female respondents might not On a positive note, the findings are in line with altruistic
be able to contribute financially to their children as much behavior, in which respondents having a higher level of
as the male respondents, they still provide non-financial education and income were observed to provide more
support, such as helping with household chores, and financial support to their parents or children. The results
taking care of the grandchildren. About 17% of female also validate the parental repayment hypothesis, which
respondents from MARS Wave-1 reported taking care of postulates that parents’ earlier investments in human
their grandchildren. capital were repaid in proportion to the respondents’
income and educational attainment. This is supported
The results also revealed that there is an upstream flow by the fact that the investment in higher education
of intergenerational transfers, from the younger to the within Malaysian households has been increasing over
older generation, similar to a trend described by Lillard the decades. The proportion of the Malaysian labor force
& Willis (1997). As for the motives, our findings confirm having a tertiary education has been increasing over the
the existence of the old-age security hypothesis, whereby last several decades. Only 6.1% of the Malaysian labor
as the respondents get older, they are expected to receive force had a tertiary education in 1982, compared to around
more financial support from their children rather than 31.8% in 2021 (DOSM, 2021).
providing it.
Bumiputera (Sabah and Sarawak) respondents were
We also observed that low-income respondents are found to give more financial support amount to their
more financially dependent on their children compared parents than Malay respondents, following a similar
to those with higher incomes, although the actual amount pattern to Chinese and Indian and Others respondents.
received is smaller. Low wages and salaries received Earlier, we proposed Bumiputera (Sabah and Sarawak) will
throughout most of the working period may be the cause provide lesser financial support amount to their parents,
of this predicament, which left them unable to sustain their considering they have lower income in general. Although
livelihood on their own. Eventually, this forces them into a the pattern in providing financial support to parents for
position where they must rely on their children for financial Bumiputera (Sabah and Sarawak) is similar to Chinese,
support. This puts a burden on the working-age population Indian, and others, the motives behind these transfers can
and is further exacerbated if the children are unable to be varied.
secure better jobs that can provide them with better salaries Chinese and Indian and Others respondents can
and benefits than their parents, thus catapulting them into provide more financial transfers to their parents since their
financial insecurity or worse, trapping them in an endless
poverty cycle. average household income is higher than Malay. Therefore,
they can provide more money to their parents, despite their
Our findings also showed that respondents who parents might not be too financially dependent on them.
received government assistance were found to be getting On the other hand, Bumiputera (Sabah and Sarawak)
fewer financial transfers from their children. This respondents may need to provide their parents with greater
demonstrates how the government’s financial assistance financial support because their parents are reliant on them.
plays a crucial role in easing the financial burden that the This is supported by the fact that across states in Malaysia,
younger generation has in providing for their parents. Sabah has the highest incidence of absolute poverty, while

Volume 11 Issue 4 (2025) 111 https://doi.org/10.36922/ijps.1326