With the Malaysian economy showing resilience this year, a number of businesses are planning salary increases. However, many Malaysians remain outside traditional employment and are engaged in unpaid care work, a sector that has contributed an estimated 379 billion ringgit (US$85.3 billion) to Malaysia’s GDP as of June 2024.

While a minimum wage has been established, the significant contributions of family caregivers remain largely unrecognised.

Family caregivers include relatives, partners, friends, and neighbours with a personal connection to the care recipient. Their roles are diverse, from household chores and personal care to emotional support, medical care, and advocacy. This includes caring for older adults, individuals with disabilities, and those with chronic illnesses.

In 2022, some 3.2 million individuals in Malaysia, mostly women (98%), were outside the labour force or in part-time work due to domestic responsibilities.

Caregivers face financial burdens due to lost income and out-of-pocket expenses. They also experience emotional challenges such as stress, anxiety, depression, burnout, and social isolation. Meanwhile, the physical demands of domestic work can lead to fatigue and health problems.

Culturally, family caregiving is significant in Malaysia, influenced by filial piety. This often leads to family members, especially women, feeling obligated to provide care at home, which is the prevalent model.

Back in 2019, 5.7% of Malaysian adults were informal caregivers. The number may have grown significantly as the country continues to lack social security for them.

Also Read: Employee benefits trends in Malaysia

The social security landscape in Malaysia

Malaysia’s social security primarily focuses on retirement (EPF) and employment issues (SOCSO). While EPF allows withdrawals for specific needs, it excludes the ongoing financial needs of caregivers.

SOCSO offers a limited monthly allowance (Elaun Layanan Sentiasa) to some caregivers, but there are no specific social security benefits for family caregivers in the country.

Internationally, Canada, France, Germany, Sweden, and the UK offer various support for family caregivers. These include paid leave, financial payments, pension credits, and respite care. Examples are the UK’s Carer’s Allowance and Credit, Germany’s care leave laws, and Canada's caregiving benefits and credit.

The absence of adequate social security benefits for family caregivers in Malaysia has significant repercussions. It imposes considerable financial strain, potentially pushing caregivers into poverty and hindering their ability to secure their own financial future. The lack of support also diminishes caregivers’ overall quality of life, contributing to heightened stress levels, burnout, and mental health challenges.

Furthermore, the demands of caregiving often create substantial work-life balance difficulties, compelling many caregivers, a majority of whom are women, to either reduce their working hours or withdraw from the workforce entirely.

This not only impedes their career progression but also undermines their economic independence. The situation also represents a considerable loss of potential talent and exacerbates gender disparities within the workforce.

Why family caregivers deserve more

Family caregivers contribute significantly to the economy. Enabling these individuals to join the workforce could increase GDP further. Caregivers also reduce public health expenditure by substituting for formal care.

Beyond the economic sphere, the emotional and social well-being of family caregivers is significantly impacted by their responsibilities. They experience elevated levels of stress, anxiety, depression, and social isolation.

Providing social security benefits, including access to mental health support and respite care, can play a crucial role in alleviating these pressures.

Research indicates that perceived peer support is associated with a reduced caregiver burden and an improved quality of life. Social security systems could facilitate access to vital support networks and peer groups for caregivers.

Supporting family caregivers yields broader long-term societal benefits. It can lead to improved healthcare outcomes for those receiving care and potentially decrease the demand for more costly institutional care settings.

This can translate into long-term savings for the public healthcare system. When caregivers are well-supported, they are better equipped to provide high-quality care, contributing to the overall well-being of the aging population and individuals with disabilities, fostering a more inclusive and compassionate society.

From a human rights perspective, caregivers deserve to prioritise their wellbeing. Social security can empower them to meet their own needs and recognises the value of their unpaid work.

Also Read: Salaries in Malaysia set to rise in 2025

Proposed policy changes for unpaid caregivers

Enhancing existing benefits could involve expanding SOCSO coverage, increasing the Elaun Layanan Sentiasa, and allowing EPF contributions for caregivers. Direct financial stipends, inspired by Australia and the UK, and increased access to respite care and mental health support programs are also crucial.

Pilot programs and a phased rollout of benefits, along with a transparent application process, are practical implementation strategies, with regular reviews and evaluation in place. Policymakers should recognise the economic and ethical importance of supporting family caregivers.

Towards a more compassionate society

Family caregivers in Malaysia form the backbone of the nation’s care system, providing invaluable support and making substantial economic contributions that often go unrecognised.

Despite their critical role, they face significant financial, emotional, and physical challenges, exacerbated by the current gaps in social security coverage.

The implementation of comprehensive social security benefits is not merely a matter of social welfare; it is an economic imperative, a recognition of fundamental human rights, and a crucial step towards building a more just and compassionate society.

Malaysia must ensure those who dedicate themselves to caring for loved ones are valued, supported, and empowered. Their efforts directly and indirectly lead to a healthier, more economically secure, and ultimately, more caring nation.