Long-term plans take shape but shortage of caregivers, family burden and rising expenses raise concerns
PETALING JAYA: With only two days left this year, Malaysia’s social welfare system stands at a critical juncture – record cash aid has reached millions and long-term care initiatives have expanded, yet rising living costs and an ageing population highlight challenges that demand urgent attention.
While the year saw unprecedented expansion under the Madani administration, it also exposed structural weaknesses that will require sustained focus from policymakers.
Ageing population and rising care needs
One of the most consequential trends shaping welfare policy in 2025 was Malaysia’s accelerating shift towards an ageing population. The proportion of Malaysians aged 65 and above continues to rise, driving growing demand for long-term care, disability support and community-based services.
The National Ageing Action Plan 2025–2045 sets out a 20-year strategy to prepare Malaysia for life as an “aged nation” by 2043. It focuses on strengthening the care economy, professionalising caregiving, and improving long-term care governance.
Key measures include expanded Technical and Vocational Education and Training (TVET) for care workers and double tax deductions for companies training staff in elder and disability care.
Complementing this, the Malaysia Care Strategic Framework & Action Plan 2026–2030, launched earlier this year, provides a roadmap for a structured and resilient care system. It strengthens legislation, governance, career pathways, advocacy, research and strategic collaboration – covering both professional caregivers and unpaid family carers.
Budget 2026 allocations announced last year earmarked RM1.26 billion for elderly welfare, benefiting about 180,000 seniors through socioeconomic aid, community centres and disability support.
Despite these efforts, caregiver shortages and the heavy burden on informal family carers remain pressing challenges.
Record cash aid and cost-of-living support
2025 also saw unprecedented direct cash aid initiatives, expanding social support across Malaysia. The Sumbangan Tunai Rahmah (STR) programme provided monthly cash aid to low-income households, seniors, singles and the hardcore poor, reaching up to RM4,600 per household. Meanwhile, Sumbangan Asas Rahmah (Sara) offered essentials-focused cash aid via MyKad, benefiting over 5.4 million recipients, with uptake of 98–99% in several states and expansion to 8,400 partner stores nationwide.
A historic one-off RM100 Sara payment for adults aged 18 and above reached more than 22 million Malaysians, allowing them to purchase essential goods between August and December 2025. Meanwhile, the Budi Madani RON95 subsidy provided petrol at RM1.99 per litre for 16 million eligible Malaysians.
Other notable initiatives included Skim Perubatan Madani for low-income healthcare, MySalam takaful protection for B40 households, and Bantuan Kanak-Kanak for children in low-income families.
Housing schemes such as Program Perumahan Rakyat, Rumah Mesra Rakyat, and PR1MA expanded affordable housing access, while disability support programmes such as the assistance for the disabled persons who are unable to work and the allowance for disabled workers offered critical assistance. Youth were supported through the MyRailLife pass, providing free KTM rides to students and persons with disabilities.
Rising welfare numbers and system upgrades
The scale of assistance in 2025 was reflected in a sharp rise in welfare recipients. By year-end, over 556,000 individuals were receiving regular payments through the Social Welfare Department, costing RM2.28 billion annually – up from just over 200,000 individuals previously. This growth highlighted both broader eligibility and deeper socioeconomic pressures, particularly in urban areas.
While monthly aid, such as Children’s Aid, Senior Citizens’ Aid and Disabled Workers’ Allowance, is scheduled for disbursement by the 10th of each month, delays persisted due to an ageing digital system.
To modernise delivery, the department is developing the Welfare Aid Management System 2.0 (SPBK 2.0), a fully online, secure and user-friendly platform set to replace eBantuanJKM by the end of 2026.
It will integrate advanced tools such as the geographic information system, automated notifications and cloud computing with platforms such as Padu, eKasih, iSpeks, iGFMAS, MyIdentity and MyGDX, expediting verification and aid distribution.
Additional targeted initiatives include Kasihnita, a skills and support programme for single mothers, urban poverty eradication programmes and subsidised basic goods and food assistance for low-income communities.
Looking ahead
2025 marked bold moves in Malaysian social welfare, from record STR and Sara handouts to the one-off RM100 payment reaching 22 million adults. Long-term planning also advanced, with the National Ageing Action Plan and Malaysia Care Strategic Framework laying the groundwork for a resilient care system.
Yet caregiver shortages, limited pensions and outdated digital systems show that generosity alone is not enough. Policymakers must now balance immediate relief with sustainable, future-ready support.
