INTRODUCTION

Malaysia has a newly industrialised market economy, which is relatively open and
state-oriented. The economy of Malaysia is the third largest in Southeast Asia, after the much
more populous Indonesia and Thailand, and 35th largest in the world. Malaysia is also the
third richest in Southeast Asia by GDP per capita values, after the city-states of Singapore
and Brunei. Malaysias economy is one of the most competitive in the world, ranking 14th in
2015. Malaysias economy grew at the slowest pace in more than six years as exports
weakened and private investment eased, adding pressure on policy makers to boost growth
amid an uneven global recovery. The Malaysian economy expanded by 4.2 percent year-on-
year in the March quarter of 2016, moderating from a 4.5 percent growth in the previous
period but slightly above market expectations of a 4.1 percent expansion. It is the weakest
growth since the first quarter of 2013 as a faster increase in private and public consumption
were not sufficient enough to offset a significant slowdown in investment and a decline in
exports. On a quarter-on-quarter seasonally-adjusted basis, the economy grew by 1.0 percent,
slowing from a 1.5 percent expansion in the previous three months. GDP Annual Growth
Rate in Malaysia averaged 4.75 percent from 2000 until 2016, reaching an all-time high of
10.30 percent in the first quarter of 2010 and a record low of -6.20 percent in the first quarter
of 2009.

Figure 1: Current and forecasted population

 As shown in figure 1, data from the year 1970 to 2010 are taken by census committee
of Malaysia whereas data from the year 2011 to 2020 are forecasted data. The table shows
that Malaysia population is growing fast as the year increase. Many rural populations are
migrating to town as viewed in the figure. Malaysia has a strong growth in terms of GDP and
its population over decades. This figure is expected to further decrease to 1.9 percent in 2040
in tandem with the declining in fertility rate (Department of Statistics (DOS), 2005; 2011).
Incidentally, the population for the age group of 0-14 years old is expected to decline while
the population for the age group of 65 years and above is expected to increase. The increase
in the population of the elderly in the future is highly influenced by the better living standard
that leads to a longer life expectancy. Hence, this situation calls for a more comprehensive
policy to cater for a healthy and excellent lifestyle for the elderly, which includes protection
against loss of income during retirement. As a developing country Malaysia should
emphasises more on eradicating poverty among its residents especially elderly citizens.

Poverty, as measured by the Poverty Line Income (PLI) measures the capacity of
households to meet the minimum requirement for food and non-food consumption. The PLI
is not a static measure but changes over time, with adjustment to the changes in the standard
of living. A household is considered poor if the households gross income falls below the
national PLI. The 2009 PLI was RM760, RM1, 050 and RM910 for Peninsular Malaysia,
Sabah and Sarawak respectively (Economic Planning Unit (EPU), n.d.). The PLI was further
differentiated between urban and rural areas. The PLI for urban areas was RM770, RM1, 020
and RM940 for Peninsular Malaysia, Sabah and Sarawak respectively while the PLI for the
rural areas was RM740, RM1, 080 and RM880 for Peninsular Malaysia, Sabah and Sarawak
respectively (EPU, n.d.).
 Malaysia has been applauded by international organizations for its success stories in
poverty eradication. The incident of poverty had decreased from 49.3 percent in 1970 to 12.4
and 3.8 percent in 1992 and 2009, and further dropped to 1.7 percent in 2012 (EPU, 2013).
The unique socio cultural of Malaysia has led to the dimensions of poverty being investigated
based on ethnic groups and strata. Bumiputeras, literally translated as the son of the soil
were the group with the highest poverty incidence, with 64.8 percent in 1970 but down to 2.2
percent in 2012 (EPU, 2013). The other two major ethnic groups, the Chinese and Indians
had a low and moderate poverty incidence with 26 and 39.2 percent in 1970 to 0.3 and 1.8
percent in 2012 (EPU, 2013). Poverty incidence was also higher in the rural area as compared
to the urban area with 58.7 and 21.3 percent in 1970 to 3.4 and 1.0 percent in 2012. Despite
the remarkable dropped in poverty incidence there were still some pockets of poverty and
many of them were elderly. The 2009 data on poverty incidence according to age group
showed that poverty incidence increased with age (Figure 2).

Figure 1: Poverty Incidence according to age group

The elderly constitute the fastest growing population group in developing countries
(Help Age International, 2002). In Malaysia, one out of every 16 people is an elderly person
aged 60 years and above (Tengku, Jariah and Chai, 2004). Ministry of Health Malaysia
classify those 60 and above as elderly people. The economic situation of elderly in Malaysia
is largely a discouraging picture with women consistently being among the poorest group in
the country (Cheung, 2000; Ofstedal, Reidy and Knodel, 2003; Tengku, et al, 2004). This
leaves poverty among the elderly and in particular among the women folk as a major concern.
This is made worse by the fact that most females are the surviving spouse and require more
economic resources to sustain their longer life. Access to resources will influence the
economic well- being of the elderly. Elderly men reported earning an income from multiple
sources compared to women who predominantly reported social income (money from
children) as their main source of income. However, income does not tell the whole story
about the elderlys economic status. This is because the elderly have been able to accumulate
assets throughout their life cycle and can draw on these assets to support their consumption as
they advance in age. Assets owned make a sizeable contribution to the elderlys well- being
as they enable the elderly to consume more than their current income allows (Miller and
Montalto, 1998; Hungerford, Rassette, Iams and Koenig, 2002). Due to lack of (and often
limited) access to opportunity to work and earn, women compared to men lag behind in asset
ownership. Men have the opportunity to work and accumulate assets throughout their lives
while women do not have this opportunity. Indeed, the labour force participation of women in
Malaysia is only 47% compared to 82% for men (Malaysia Department of statistics, 2002).
Women are mostly engaged in domestic or unpaid work throughout their life and it is
expected that they do not have access to opportunities that would help them build up their
resources (Hira and Mugenda, 2000; Coltrane, 1998). The study concludes that gender
differences in economic status of men and women persist through into their old age. It also
proven that majority elderly is financially dependence on others for their livelihood (Jariah,
Tengku and Sharifah, 2012).
FACTORS CONTRIBUTING TO POVERTY AMONG ELDERLY IN MALAYSIA

MEDICAL COSTS
One of the biggest drivers of poverty in old age is failing health and the associated medical
costs. Most retirees living below the poverty line (70 percent) have suffered acute health
conditions such as cancer, lung disease, heart problems, or stroke, compared with 48 percent
for those above the poverty line, according to health and retirement study data. And almost all
senior citizens living in poverty (96 percent) have some sort of health condition, such as high
blood pressure, diabetes, psychological problems, or arthritis, versus 61.7 percent of retirees
with incomes above the poverty line.

"Medical expenditures go up for the elderly as they age and medical expenses have been
rising over the past decade very rapidly," says Sudipto Banerjee, a research associate at EBRI
and author of the report. "A lot of people have to move to nursing homes, and nursing homes
are very expensive. People who live there, they lose their income and assets very quickly."

Many people also spend down their retirement savings too quickly, especially during
recessions. As people age, personal savings and pension account balances are depleted. Also,
the rising poverty rates noted correspond to the two economic recessions that occurred during
the last decade.
DEPENDENCY IN OLD AGE
Dependency is closely associated with old age. Now-a-days many people assume that old
people will inevitably become a burden upon the family members. For many old poor people,
the worst aspects of economic dependence are reflected in the violation of human rights,
individual freedom, and human dignity. Dependence of aging people is humiliating. The
problems of loss in old age are often more bitter and intense. The old age dependency ratio is
increasing and its burden is likely to be felt more because of low per capita income, and
major erosion of traditional norms of a close-knit-family (extended family) structure. Normal
social attitude considers the old people as handicapped incapable of living their lives without
sound support, and totally dependent upon the assistance of family members. This link
between old age and dependence is structured by social taboos and organization.

LACK OF SKILLS
Lack of skills was also identified among the causes of chronic poverty among the elderly.
This was attributed to their inability to access formal schooling during their early years of life
due to poverty and ignorance of the benefits of education by the parents. The female elderly
also added the attitudinal factors against girls education, which were more wide spread and
deep rooted during their school-going years. This denied them opportunities through which
they could develop competencies that would enhance their survival and livelihoods in
adulthood and older stages of life.

LACK OF SOCIAL SECURITY SYSTEMS

Some respondents also cited lack of social security systems for all elderly as a major cause of
chronic poverty among older persons. Currently, the only social security system in Malaysia
for the elderly is the pension scheme for the former public servants. Most of the workers in
Malaysia are outside the government public service and thus are not potential beneficiaries
for this scheme. This makes the elderly prone to chronic poverty since whatever little income
they earn in the latter years has to cater for their basic needs including health, denying them
opportunities for viable income-generating activities at this stage. This also implies that those
without any other support and who cannot earn a living are left to providence and hence
greater vulnerability to poverty.

UNEMPLOYMENT
Unemployment was taken to be lack of involvement in any work, which generates a wage or
income at the end of the day. In Uganda, as elsewhere, earnings from employment (formal or
informal) are the main sources of income for most households and adequate earnings are the
main means of avoiding poverty. The causes of unemployment among the elderly varied from
community to community. Exclusion from work can also have serious deleterious
consequences that significantly reduce the quality of life of older people. Inability to be
productive or earn sufficient income to meet the basic necessities of life (for self and own
families) for most of the time is a prime example of the severe nature of chronic poverty
(Kimberly, 2003). Further, Alcock (1997) observes that with exclusion from work, experience
and knowledge of older persons are no longer valued, contact with colleagues and friends at
work are arbitrarily severed and the status and respect that go with employment and
productivity are taken away. In the rural communities, unemployment was attributed to lack
of energy among the elderly. The rural economy in Malaysia is basically agricultural with the
hand-hoe still being the only farming tool particularly for the rural poor. So, energy is still a
critical need in conducting the agricultural chores of our farmlands.

LOW AGRICULTURAL PRODUCTIVITY, FLUCTUATING PRICES AND LACK OF

MARKETS
The low agricultural labour productivity was attributed to the aging process, which drains
physical energies and hence affects ones ability to cultivate the agricultural fields. Natural
calamities like drought and crop pests were also cited among causes of chronic poverty in
particularly rural areas, through their impact on agricultural yields. Most of the elderly who
suffered these have failed to pull out leaving them impoverished. In Malaysia, crop pests like
the tea wilt disease and banana weevils were noted to have significantly contributed to the
persistent state of poverty in which older persons are today. Tea plantations were cut down
and some farmers have never regained the morale and energy to plant new ones. The
pesticides were also noted to be getting more and more expensive draining their meagre
resources further.
IMPACTS OF POVERTY AMONG ELDERLY IN MALAYSIA

HEALTH
This includes things from diseases to life expectancy to medicine. Diseases are very
common in people living in poverty because they lack the resources to maintain a healthy
living environment. They are almost always lacking in nutritious foods, which decreases their
bodies ability to fight off diseases. Sanitation conditions are usually very low, increasing the
chance of contracting a disease. Sometimes these diseases can be minor, but other times they
can be life-threatening. In general, people living in poverty cannot afford appropriate
medicines to treat these illnesses.

Life expectancy and child mortality are greatly affected by poverty. Statistics show that life
expectancy in poor nations is up to 30 years below that of wealthy nations, like the United
States. Child mortality is shockingly high in poor countries; 13.5 percent of children die
before the age of 5 in poor countries. This number is the average for poor countries, however
some African nations have a child mortality rate of 20 percent.

Figure 3 shows death by age group and sex in Malaysia for the year 2013 and 2014. The
figure clearly shows that the death rates among elderly people are high. One of the reasons
might be due to poverty among elderly people. As the year increases the rates increases too
this might be due to hike up medical expenses in Malaysia.

Figure 3: Death rate according to gender and age for the year 2013 and 2014
SOCIETY

Figure 4: A guy charged for stealing sardine tin

 Many elderly people living in poverty are homeless, which puts them on the streets.
There also seems to be a connection between poverty and crime. When people are
unemployed and homeless, social unrest may take over and lead to increases in crime. When
people have nothing and no money to buy necessities, they may be forced to turn to theft in
order to survive. Homelessness and high crime rates impact of a countrys people and can
create many problems within a society. For example in Malaysia many crime cases related to
food stealing reported. The elderly people who live in poverty tend to take the risk to steal
raw foods from the shops due to the financial problems that they are facing as shown in
figure 4. The case shown in figure 4 was reported at Kelantan.

It is clear that poverty has far-reaching effects on all people. By improving global
poverty, economies could prosper, health could improve and countries can develop into
strong global presences. All countries will benefit when decreasing global poverty becomes a
priority in the world.

ECONOMY
Mainly, the number of people living in poverty influences employment rates heavily.
Without an education, people are unlikely to find a paying job. Unemployment hinders a
country from developing into a strong economic system. A high unemployment rate can
impede a country from progressing in all aspects.

The labour force suffers when a large part of the citizens cannot contribute to
economic development. For example, the Indian economy has not been able to develop at a
high rate for many years because of the high number of people living in poverty. About 22
percent of the population in India lives in poverty and their economy can only improve when
this percentage decreases.

Figure 5: The percentage of employed persons by age, group and sexx

 As referred in Figure 5, the labor market shows a decrease in number of elderly
employee from the year 2013 to 2014. Malaysian economies are not giving much space for
the elderly in the labor market. Elderly could not contribute to the economy hence they are
losing source of income.

IMPLEMENTATION TO SOLVE POVERTY AMONG ELDERLY PEOPLE IN

MALAYSIA
Unemployment and thus lack of access to regular income was singled out as a key
contributor to the permanent state of poverty experienced by most elderly persons. Loss of
energy, retirement, discrimination against older persons, lack of assets and lack of skills and
start-up capital were identified as the determinants of this trend. Of importance to note is that
our economy is basically agricultural and a number of older persons missed out on formal
education in their early years and hence have limited competencies; both of which denote
limited opportunities for off-farm activities that require less energy.
 The elderly, particularly females expressed the need for credit to facilitate their small
income generating projects. Credit facilities should thus be extended to the elderly who have
better and wider opportunities that could easily facilitate loan recovery. These should,
however, carry lower interest rates with flexible recovery terms. They should also embrace a
training component for better identification of viable projects and efficient resource
management among potential beneficiaries. This would require advocacy and lobbying so
that financial institutions start looking at the urban poor elderly as a special group with
capacity to generate income and the ability to repay.

Rural elderly could be mobilized to start up group activities like poultry and bee
keeping. Seed money in form of grants is however, required to enable the initial projects take
off. Profits could then be put back into the projects for expansion. Provision of high yielding
seeds, pesticides and fertilizers through agricultural programs like the Program for the
Modernisation of Agriculture (PMA) could also boost the productivity of their small acreages
and hence improved incomes. The National Agricultural Advisory Services (NAADS) also
needs to be scaled up to overcome the problem of extension services.

In addition, adult functional literacy programs should be heightened to enhance skills

development, which is a pre-requisite for poverty reduction. The functional learning themes
should be elicited from primary stakeholders the older persons themselves, based on their
problems. Such an approach is likely to bring out specific skills requirements of the elderly,
which are sensitive to their gender asymmetry particularly in responsibilities. The acquired
skills would go a long way to empower the elderly and probably instill ingenuity regarding
employment options in light of the prevailing circumstances and environments for respective
elderly.

In order to facilitate support towards income generating activities and functional skills
development, poor older persons need to be mobilized and encouraged to form groups.
Community groups would help them increase their self-esteem and confidence; develop
friendships and mutual support strategies, which would enable them solve problems together;
and they would also enable them be in better touch with the community. Community
development workers in the districts and sub-counties could spearhead the formation of such
groups.

The poor health status of the elderly strongly comes out as a key deterrent to their
active participation in income earning activities and hence chronic poverty. The common
diseases that were identified to be affecting the elderly include diabetes, loss of sight, hearing
impairments, rheumatism, hypertension, muscular pains and asthma. These lead to
complications in the body system and permanent incapacity in some instances not to mention
the constraints they pose to the meagre resources in the process of searching for medical care.
There is also a very high likelihood that a number of the poor elderly dont even seek modern
medical care in light of the high costs on health care, which were echoed by a number of
respondents. This study also brings out attitudinal issues among health care providers, which
also prohibit health service utilization among the elderly. As expressed by the respondents,
there is need for free and specialized geriatric services to be provided in at least Government
health units in order to address the health care needs of older persons. This may imply
curricula review of health training institutions and the embracing of the elderly in the Primary
Health Care system. Better health would result in better and energetic lives among the
elderly, longer contribution to their families and entire community and hence better chances
of breaking the chronic poverty trap. There is also need to change the existing negative
attitudes among health workers and the entire public, which discourage older persons from
accessing health services.

The existing political structure in the Lower Local Governments has representatives
for the elderly who are nominated by the Chairpersons and approved by the Executive
Committees. Much as this is a step towards the inclusion of the elderly in the Local
Government decision-making process, the fact that the elderly do not elect the representatives
and the total lack of consultation of the elderly by the Local Council representatives makes
the elderly not truly represented. There is therefore, need to amend 36 this provision of the
Local Governments Act, so that older persons elect their leaders through an election exercise,
as is the case with the women, youth and disabled persons. The presumably elected
representatives would find it easier to identify with the electorate and vice-versa.

Further, government at all levels should devise ways of creating support systems for
the elderly. Institution of government support systems would be an avenue of minimizing
vulnerability of the elderly particularly to the various forms of poverty. It would create an
inner feeling of appreciation for their contributions in the productive years while at the same
time taking away the fear and anxiety we all have in relation to older years. This however
requires consultation of the elderly and advocacy so that the political system becomes
sensitive to the needs of the elderly if they are to be looked at as a specially marginalized
group/category.
CONCLUSION
Population ageing in Malaysia has raised concerns with regard to the ability of the
current social protection system to provide adequate support for the elderly. This support is
crucial not only because of an increasing proportion of the elderly population but more
importantly, many informal workers are not covered by the social safety net despite measures
to expand coverage to this group, such as the introduction of the 1Malaysia Retirement
Scheme recently. The success of this scheme and the new cash assistance programs such as
the Bantuan Rakyat 1Malaysia (BR1M) remains to be seen.

Maintaining and strengthening support for the most vulnerable groups must remain a
crucial part of any long-term strategy for development. Nonetheless, in many countries
including Malaysia, the search for social protection instruments to address vulnerable groups
has been largely influenced by the multi-pillar taxonomy of the World Bank. Universal social
protection is not on the agenda. Universal social pension can play a significant role in
providing incomes and helping to alleviate the risk of poverty among the elderly as a starting
point and could be extended to other vulnerable groups.

Even with modernization and urbanization, there was a high percentage of Malaysian
elderly core siding with an at least one adult child. Elderly co-residing with at least one adult
child was less more susceptible to be living in poverty. The responsibility of providing and
preparing for the needs of the elderly was taken over by the adult child. In fact the result had
shown that being a member of household in a household with at least one adult child reduced
the probability of elderlys poverty. Given the changing in the demographic profile of the
country, a comprehensive policy to cater for the wellbeing of the elderly ought to be given a
priority. It is about time to revise the availability social protection programs to ensure that
they are sufficient to assist the elderly to at least meet the minimum standard of living. The
current monthly RM300 assistance provided could not even lift the elderly to be out of
poverty, led yet to allow them to lead a comfortable life at retirement. At the same time,
increasing the amount of the assistance would lead to a high implication on the fiscal cost.
Therefore a comprehensive social protection able to provide adequate non retirement income
is necessary to enhance the economic wellbeing of the elderly.
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