Declining birth rate threatens Malaysia's economy

Malaysia is facing a critical demographic challenge as its birth rate plummets to its lowest point in over four decades. Statistics reveal that in 2024, the country recorded just 414,918 live births, a stark decline from the 455,761 births registered the previous year. This figure represents the lowest number of live births since 1980, signaling a significant demographic shift.

The overall fertility rate (TFR) has also fallen, now standing at 1.6 children per woman. This is considerably below the 2.1 children per woman needed to maintain a stable population. The declining TFR indicates a long-term trend of fewer women having children, which has profound implications for the nation's future.

This sustained decrease in births is not merely a statistical anomaly; it poses a significant threat to Malaysia's economic stability and growth. A shrinking population can lead to a smaller workforce, reduced consumer demand, and increased pressure on social welfare systems. The long-term economic consequences of an aging population and a declining birth rate are a growing concern for policymakers.