Time Banks Could Transform Malaysia’s Ageing Future – Economist

By Ahmad Erwan Othman

KUALA LUMPUR, Aug 7 (Bernama) -- As Malaysia heads toward becoming an ageing nation by 2043, an economist has proposed adopting the ‘time bank’ model, a system where people exchange voluntary service for future care, as a sustainable way to support elderly well-being and ease pressure on public resources.

Economist Dr Ahmed Razman Abdul Latiff said the concept, practised in countries such as Japan, the United Kingdom, the United States and Thailand, could complement Malaysia’s national ageing roadmap by mobilising community involvement and volunteerism.

“The principle is simple. For every hour of voluntary service, such as caregiving, teaching or maintenance work, time credits are earned. These can later be redeemed for care services when the volunteer grows old,” said the Putra Business School academic when contacted by Bernama today.

Malaysia, which entered its ageing transition in 2021, is projected to become an aged nation by 2043, with 14 per cent of its population aged 65 and above. This shift, he noted, will drive up healthcare costs and place greater strain on a shrinking workforce.

“Time banking offers a way to ease reliance on public funds, reduce intergenerational tax burdens and strengthen social cohesion amid falling fertility rates,” he added.

Prime Minister Datuk Seri Anwar Ibrahim recently announced that a National Ageing Blueprint (2025–2045) will be introduced under the 13th Malaysia Plan (13MP) to guide national strategies in facing demographic change.

The blueprint will cover the development of a more accessible and affordable long-term care (LTC) system, legal reforms to regulate elder care, incentives for caregivers, and expanded Technical and Vocational Education and Training (TVET) training in the care sector.

Ahmed Razman pointed to Thailand’s JitArsa Bank, a government-led time bank under the Department of Older Persons, as a working example of structured community involvement in elder care.

He also proposed integrating time banks with waqf (endowment) assets to build a more sustainable social support ecosystem.

“Waqf assets such as land, buildings, vehicles or funds, can be used to develop retirement homes or health centres, while their operations could be run by time bank volunteers,” he said.

Individuals and corporations, he added, could contribute cash for the upkeep of these facilities, while those without financial assets could earn time credits through services like cleaning, maintenance, caregiving, which could be redeemed later.

“These lower operating costs reduce pressure on public spending and enable more people to take part in managing endowment assets.

“It also encourages intergenerational interaction, social responsibility and inclusivity. Even those without financial assets can contribute through time and service, earning credits for their future care,” he noted.

Ahmed Razman further called on the government, private sector, religious bodies and non-governmental organisations to work together on a national framework for time banking. He also stressed the need to cut red tape and involve young people to build broad public support.

“Done right, time banking could become a game-changer, connecting generations and building a more caring, resilient society,” he added.

-- BERNAMA