Sandwich generation crisis worsens as more people struggle to find work

Malaysia is grappling with an intensifying 'sandwich generation' crisis, a situation where individuals are financially burdened by supporting both their aging parents and their own children. This challenge is amplified by escalating living costs and the nation's swift demographic shift towards an older population. Many young Malaysians find themselves caught between personal financial responsibilities and the needs of multiple family members.

The 'sandwich generation' phenomenon, defined by individuals financially supporting two generations simultaneously, is gaining prominence as Malaysia navigates its changing demographic structure. The recent publication of Malaysia's National Transfer Accounts (NTA) for 2022, the first of its kind, offers crucial insights into these intergenerational economic dynamics. These accounts are likened to an 'economic biological clock,' illustrating the flow of income and consumption across different age groups throughout their lifespans.

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This means that the period an individual is a 'net contributor' to the economy is only about 26 years, compared to the ideal measure of 49 years.

Dr. Muhammad Daaniyall Abd Rahman, a Senior Lecturer at Universiti Putra Malaysia's Business and Economics School, emphasizes the importance of this data for economic planning, especially as Malaysia confronts an aging population. He notes that the changing population structure directly impacts income patterns, consumption habits, and economic dependencies within families. While international definitions consider individuals aged 15 to 64 as the prime working group, generating income for about 49 years, Malaysians typically only start earning more than they spend between the ages of 29 and 55. This narrows their period as 'net contributors' to roughly 26 years, leaving a significant portion of their lives in 'life-cycle deficit.'

This deficit highlights an imbalance in economic contributions over a lifetime. The NTA data further reveals that individuals aged 29 to 55 are not only supporting themselves but also younger relatives and elderly parents. Consequently, a substantial portion of the population relies on family support, the surplus income of others, or personal savings to manage living expenses. This precarious financial situation forms the bedrock of the increasingly felt 'sandwich generation' crisis in Malaysian society.

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This is the situation that forms the basis of the 'sandwich generation' crisis that is increasingly felt in society today.