Malaysia’s population is still growing, but at its slowest pace in recent years. The Department of Statistics Malaysia (DOSM) estimates that the country reached 34.3 million people in the third quarter of 2025, a growth of just 0.5% compared with 1.6% a year earlier. This shift reflects more than demographic change. It also signals developments that may affect household finances, long-term savings, and future earning opportunities.

Citizen composition rose slightly to 90.1%, while non-citizens accounted for 9.9%. The number of older Malaysians continues to increase, making up 8.0% of the population, while the share of children fell to 21.6%. The working-age group saw only marginal growth, rising to 70.4%. These indicators point to a country gradually transitioning into an older, slower-growing society.

Fewer Births Today Shape The Workforce Of Tomorrow

Malaysia recorded 95,469 births in Q3 2025, which is 7.8% fewer than the previous year. Mothers aged 30 to 39 remained the largest group giving birth, but overall birth numbers have been declining for several years. This matters for personal finance because fewer births today translate to fewer workers twenty years from now. A smaller workforce can influence wage growth, productivity, tax policies, and the sustainability of national retirement systems.

Chief Statistician Malaysia, Dato’ Sri Dr. Mohd Uzir Mahidin, noted that Malaysia’s declining births mirror global patterns where many countries now record fertility rates below the replacement level. Mohd Uzir explained that nations facing similar trends have been forced to consider long-term adjustments, including stronger family support measures, expanded childcare, and policies to encourage labour participation. These ideas highlight the scale of planning required when the number of young people begins to shrink.

An Ageing Nation Will Shift Spending And Financial Priorities

The mortality data reinforces Malaysia’s ageing trajectory. There were 46,643 deaths in Q3 2025, with nearly 70% among those aged 60 and above. When the elderly population expands faster than the working-age group, it often results in higher national spending on healthcare, aged care services, and social protection. For households, this can mean rising medical insurance premiums, increasing long-term care expenses, and more pressure on families to support ageing parents.

An older population may also influence the cost of living in sectors like healthcare and specialised services. For individuals planning their financial future, this emphasises the need for stronger medical protection, early retirement planning, and long-term savings habits that can withstand higher living costs in older age.

What A Slow-Growth Population Means For Your Financial Future

A population that grows slowly and ages steadily tends to change the pace of economic expansion. Over time, this can influence wage growth, job creation, investment performance, and the overall cost of social support systems. For Malaysian workers, this means it is increasingly important to build skills that remain competitive in a labour market where talent shortages may coexist with higher expectations for productivity.

For savers, an ageing society highlights the importance of consistent retirement contributions and proactive investment planning. As fewer young workers enter the labour force in the future, reliance on personal savings and EPF accounts is likely to become even more crucial for financial security in later life.

Malaysia’s strong showing in international data benchmarks, including its recent top global ranking in the Open Data Inventory (ODIN) 2024/25, suggests that policymakers will continue using data-driven approaches to anticipate and respond to demographic pressures. Platforms such as OpenDOSM NextGen support this process by providing accessible population insights to the public.

Why This Matters For Malaysian Households

Population trends may seem distant from everyday financial decisions, yet they shape the economy that households live and work in. Slower population growth, fewer births, and a growing elderly population point to a future where financial planning, retirement readiness, and healthcare protection will matter more than ever. As Malaysia continues its demographic transition, households that prepare early will be better positioned to navigate the economic shifts that follow.

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