The government will reduce the service tax on elderly care services from 8% to 6% from Jan 1, 2027, with a full exemption on care fees of up to RM96,000 annually under Budget 2027.
Prime Minister Datuk Seri Anwar Ibrahim said the government would also draft a Senior Citizens Bill to address neglect and strengthen the country’s overall elderly care system as Malaysia prepares for an ageing population.
More than RM40 million will be channelled through HRD Corp to train 8,000 people for jobs in the elderly care sector.
Two National Integrated Care Centres of Excellence (NICE) will also be developed in Penang and Sarawak to support training, research and elderly care.
Separately, the government will raise financial assistance for senior citizens to RM1.3 billion next year, benefiting nearly 200,000 recipients.
Employees Provident Fund (EPF) members aged 55 and 60 will also be able to opt for the i-Emas scheme, which allows monthly withdrawals while keeping their remaining savings invested to continue earning dividends.
