Having children remains a dream for many Malaysians, but a growing number now weigh it as a financial decision they are unsure they can afford, with rising living costs.
PETALING JAYA: Having children remains a dream for many Malaysians, but a growing number now weigh it as a financial decision they are unsure they can afford, with rising living costs increasingly shaping choices around marriage and family size.
Universiti Teknologi Mara economist Dr Mohamad Idham Md Razak said financial considerations have become a key factor behind delayed family formation and smaller family sizes, as couples weigh the long-term costs of raising children against their income and financial stability.
He said expenses related to housing, childcare, education and healthcare have increased the financial threshold required to start a family, prompting many young adults to prioritise financial stability, career progression and debt management before committing to marriage and parenthood.
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“Increasingly, having children is becoming as much an economic decision as a personal one.
While cultural and family values remain important, financial considerations now heavily influence timing and family size.
“Couples are more likely to assess affordability, job security and long-term financial commitments before deciding to have children, reflecting a shift towards more pragmatic and cost-conscious decision-making,” he added.
Mohamad Idham also said income growth has not kept pace with the rising cost of raising children, particularly in urban areas where expenses such as childcare, education, housing and healthcare continue to increase while wages grow at a more moderate rate.
He stressed that this mismatch creates affordability pressures, especially for middleincome households who may not qualify for targeted assistance but still face high living costs.
“When young couples express a desire to have children but hesitate due to affordability concerns, it signals a structural cost-of-living challenge within the economy.”
Mohamad Idham stressed that if raising a child continues to become more expensive, it could lead to a persistent decline in birth rates, affecting Malaysia’s demographic balance and long-term economic sustainability.
Over time, he said this may reduce domestic demand growth, alter consumption patterns, and increase reliance on a smaller workforce to drive the economy.
“Declining birth rates carry long-term implications for Malaysia’s economy.
“A smaller future workforce can limit labour supply, reduce potential output, and place greater pressure on productivity to sustain growth.
“It may also lead to a higher dependency ratio, where fewer workers support a larger ageing population, increasing fiscal pressure on healthcare and social protection systems.”
He emphasised that as the population ages and the working-age group shrinks, policymakers must address challenges such as potential labour shortages, higher healthcare and pension costs and slower economic growth.
“To adapt to these demographic changes, Malaysia needs comprehensive economic and social support, including better wages, affordable childcare, accessible housing and family-friendly policies such as parental leave and flexible work arrangements.
“At the same time, investments in productivity, digitalisation and skills development will also be important to sustain long-term economic growth,” he added.
