Experts suggest reallocating sugar and fuel subsidies to fund social health insurance for the elderly, as there is currently no government-subsidised aged care. Revenue from higher taxes on alcohol and cigarettes can also be earmarked for elderly care.
From left: Lee Min Hui (senior analyst, Institute of Strategic and International Studies), Prof Norma Mansor (director, Social Wellbeing Research Centre, Universiti Malaya), Wahida Abdul Rahman (director, Malaysian Investment Development Authority), Raja Shahreen Raja Othman (executive director, Bina Darulaman Berhad), and Ravinder Singh (president, Malaysia Towerrunning Association) speak at the Seterra Dialogue 2024 National Caregivers Conference in Kuala Lumpur on August 8, 2024. Photo courtesy of Seterra Group.
KUALA LUMPUR, Sept 10 — Insurance and economic experts are urging the government to redirect subsidies, like those for sugar and petrol, to fund social health insurance for senior citizens.
Ravinder Singh, a reinsurance specialist with over 30 years of experience in London, Amsterdam, Zurich, Singapore and Kuala Lumpur, proposed using the RM600 million sugar subsidy to support long-term care for the elderly, citing Singapore’s ElderShield as a model.
“ElderShield in Singapore started in 2002. Two companies, Great Eastern and NTUC, were involved, and both were supported by offices in KL,” Ravinder said at the Seterra Dialogue 2024 National Caregivers Conference last August 8.
“I was personally involved in pricing the product. It has evolved over the past 20 years, but it’s a model we can build on.”
Ravinder, who is currently co-founder and chief commercial and marketing officer of AQM Technologies, highlighted the need for both private sector and government funding to support such insurance.
He argued that Malaysia’s sugar subsidy is unnecessary, as it contributes to health issues, and that reallocating it to benefit the public would be a better option.
Removing the sugar subsidy could cause problems, which is why the government is hesitant about it. But if it’s directed towards a cause that helps the rakyat, then things will move much faster.
He also proposed increasing taxes on alcohol and cigarettes as additional funding sources to support elderly care.
Chief statistician Mohd Uzir Mahidin reportedly said last Friday that Malaysia was heading towards an aged nation sooner than expected, estimating that 17.3 per cent of the population will be aged 60 and older in 2040, or 6.4 million people.
This year, those aged 60 and above comprise 11.6 per cent (3.9 million people) of Malaysia’s 34.1 million population.
