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Opportunities come alive in the retirement industry

Published by Afterschool.my on Nov 29, 2012, 07:11 am

  • Malaysia's private retirement industry could be worth about RM18 billion while creating 2,200 new jobs
  • Industry growth could mean more jobs for retirement and investments specialists as well as allied health professionals
The word "ageing and retirement" usually connote a decline or a state of degression. But in an industry that is forecast to be worth RM18 billion, it seems it's just the place for new opportunities to grow!According to Manulife Asset Management Services Bhd, the private retirement industry will create 2,200 new jobs and generate an incremental gross national income of RM2.1 billion in the financial services sector.Said CEO Edward Ooi, "This represents a huge business opportunity and will require a large skilled workforce to serve the demands of the industry."Realising the opportunity, Manulife Asset is now recruiting and training new talent as well as introduce technology from Manulife's Financial worldwide pension operations at the local level. Likewise, CIMB- Principal Asset Managment Bhd is also collaborating with a group of employers through its PRS Plus partner programme for people interested in their private retirement scheme.
The private retirement industry is just among the various sectors that will bring in more jobs in the next few years. Government estimates that 3.3 milion jobs will be available by 2020."By 2020, the nation needs high-performing and highly skilled manpower. It needs at least 40% skilled workers by 2020 to be at the same level with developed countries."

A look at Malaysia's ageing population

According to the World Population Organisation (WPO) of the United Nations, by 2030, Malaysia is estimated to reach the aging population status which means those above the age of 60 will constitute 15% of the population.In 2011, senior citizens reached 2.1 million, representing 7.3% of the Malaysian population of 28 million. Based on the projection and current trend, it is expected that total population will hit 35 million with senior citizens reaching 3.4 million by 2020.Compared to other Asian neighbours, Malaysia's ageing population is not that serious yet the next few decades will set significant challenges and Malaysia has to prepare for it.

How an ageing demographic affects our neighbour

There's no need to look far to see how an ageing population can affect the job market. In Singapore, about 193,000 aditional healthcare personnel, foreign domestic workerers and construction labourers would be needed by 2030.Among the additional manpower needed, about 9 in 10 will have to be sourced overseas even after taking into account the Goverment's move to tighten the foreign worker inflow. These projections are based on reports released by the National Population and Talent Division (NPTD)."While our foreign workforce policies will continue to remain tight, a sustainable supply of manpower in the healthcare and built environment sectors as well as for foreign domestic workers is required to serve the needs of Singaporeans," the NPTD said.
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