Page 119 - IJPS-11-4

International Journal of
Population Studies Intergenerational transfers in Malaysia

Table 7. (Continued)
Variable Coefficient Standard error t‑statistics
Income group
Less than RM 1,000 −0.224 c 0.106 −2.115
RM 1,000 – RM 1,999 −0.020 0.110 −0.184
RM 2,000 – RM 2,999 0.213 0.125 1.710
More than RM 3,000 (reference)
Received government financial assistance
No (reference)
Yes −0.548 a 0.081 −6.802
C 5.423 c 0.160 33.798
Note: p<0.10, p<0.05, p<0.01.
b
c
a
Sarawak has the third highest (DOSM, 2019). A study by Policymakers may consider introducing a universal
Mohd et al. (2018) also found there is a high probability social pension that provides a minimum monthly income
of poverty among older persons in Sabah, as compared to to senior citizens in Malaysia, instead of giving ad-hoc
other states. cash transfers which are implemented under a framework
Our findings also revealed that those with worse health reportedly fraught with inclusion and exclusion errors.
conditions are unable to provide financial support to The implementation of a public pension program may
their parents. Since they might not be able to work and help to supplement older persons with basic income to
have an inconsistent income flow, respondents with poor mitigate their lack of retirement savings. The provision
health will find it difficult to provide for their children. of a minimum income for older persons in Malaysia will
Unfortunately, they were also observed to receive lower reduce their risk of falling into old-age poverty, as well
financial support from their children, compared to as their dependency on the working-age population.
respondents with better health status. These results Universal social pension programs have already been
highlighted the issue of financial security for those with introduced in neighboring countries such as Thailand and
poor health conditions, considering they may need more Vietnam.
money for medical equipment purchases or treatment The government also needs to work together with the
expenses. The lack of financial support may put higher Employees Provident Fund (EPF) and employers to figure
financial stress on them. out the best approach to strengthen retirement savings for

As mentioned earlier, children were often perceived as workers in the private sector. Any formal programs run
a provider of financial security for parents during old age, by the government should fortify the family network and
particularly in developing countries. Thus, having a higher encourage more familial support toward older persons,
number of children is sometimes preferred compared to rather than crowding it out, to preserve a strong filial
having fewer children. Our findings are consistent with piety culture among Malaysians. For example, Singapore
Logan & Bian (2003), who found that the number of introduced priority housing schemes and tax incentives
children is positively related to the amount of support for adult children who live with their older parents (Chan,
received by older parents in China. 2005).
Human capital expenditure financed by parents
4.1. Policy recommendations plays a critical role in shaping the outcome of their
Despite that the act of giving financial support to the family children. Thus, establishing a strong social safety net
can be viewed as a selfless act, it raises huge concerns is essential for easing the working-age population’s
about the financial security of older persons in the future, financial burden for supporting their parents. It will
considering Malaysia’s average family size is expected to also facilitate younger parents to allocate more financial
decline. Going forward, Malaysia should strive to improve resources for their children’s development, instead of
the social protection system, by adopting the life-cycle having to financially support their parents. This will
approach and extending the coverage of social insurance, ultimately bring greater benefits to the country in the
particularly for women and informal workers. future.

Volume 11 Issue 4 (2025) 113 https://doi.org/10.36922/ijps.1326