Malaysia needs a labour market that empowers caregiving roles for men and women

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For illustrative purposes.

The challenges of both fertility rates and workforce participation requires transformative policy changes that cater to the needs of modern families.

As Malaysia grapples with declining fertility rates and an evolving labour market, experts are calling for more inclusive policies that balance work and family life.

Gender Consultant for UNFPA Malaysia, Lee Min Hui, stated that it is high time for Malaysia to have a labour market that allows both women and men to fulfill their adult care responsibilities.

She said that the challenges of both fertility rates and workforce participation requires transformative policy changes that cater to the needs of modern families.

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According to Lee, a growing number of countries worldwide are struggling with fertility rates below the replacement level—typically estimated at 2.1 children per woman.

Research suggests that by 2050, more than three-quarters of the world’s countries will face this issue.

Lee noted that once countries dip below the replacement rate, they tend to stay there, except for certain lower-income nations like Somalia, Tonga, and Indonesia, where fertility rates remain higher due to different socio-economic dynamics.

For Malaysia, Lee said the fertility rate has fallen below replacement levels, and the country now faces the dual challenge of boosting both fertility and women's labour force participation.

Gender Consultant for UNFPA Malaysia Lee Min Hui


"If we look at women's labour force participation rates in Malaysia, we have some of the lowest rates in Southeast Asia," Lee said, stressing that addressing this issue is critical for the nation’s demographic and economic future.

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While there is a common assumption that women entering the workforce leads to declining fertility rates, Lee suggested that this is an oversimplification.

"In some countries, fertility rates initially fell when women entered the workforce, but over time, with the right social policies, they stabilised,” she said.

She said policies such as improved access to childcare, flexible working arrangements, and generous parental leave have shown positive effects on fertility rates in other countries.

In Malaysia, Lee said a survey found that the average number of children desired by families is three, significantly higher than the current fertility rate.

"This shows that Malaysians do want larger families, but socio-economic and institutional barriers make it difficult," Lee explained.

The National Population and Family Development Board (LPPKN) has acknowledged that economic factors are a major deterrent to having more children.

"We can improve fertility rates while also facilitating women’s participation in the workforce through a range of policies," Lee added.

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Lee called for a shift in social norms and the implementation of family-friendly policies to ease the burden on working parents.

"We need cooperative values—men should not just go to work while women are expected to bear the entire responsibility of raising children. Men must play a role at home," she said.

She also said outdated social norms, such as viewing working mothers as "bad mothers,” also need to be challenged if Malaysia is to support both higher fertility and greater female workforce participation.

One solution, according to Lee, is creating more flexibility in the labour market.

"The flexibility of labour markets is crucial. How can we expect people to have children and raise them if they are unable to balance work and care responsibilities?" she questioned.

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