POPULATION AGEING AND ECONOMIC WELL-BEING IN MALAYSIA: A MAQASID AL-SHARIAH PERSPECTIVE

Hartini Mohammad

doi:10.33102/w63mb971

Authors

Hartini Mohammad Islamic Social Finance and Applied Economic Research Cluster (ISFAEC), Islamic Finance and Wealth Management Institute (IFWMI), Fakulti Ekonomi dan Muamalat. Universiti Sains Islam Malaysia, Nilai, Negeri Sembilan,Malaysia Author

DOI:

https://doi.org/10.33102/w63mb971

Keywords:

Population Ageing, Economic Well-Being, Maqasid al-Shariah, Maqasid-Driven Ageing Economy Framework

Abstract

Malaysia is experiencing a major demographic transition towards an ageing society. According to the Department of Statistics Malaysia, the proportion of individuals aged 65 years and above reached approximately 8.0 percent of the total population in 2025 and is projected to exceed the ageing nation threshold of 14 percent by 2044. From economic development point of view, this demographic transformation creates substantial challenges for retirement adequacy, healthcare financing, social protection, labor productivity, and fiscal sustainability. Conventional economic approaches frequently address these issues through pension reforms, fiscal interventions, and healthcare expenditures, yet often overlook ethical and holistic dimensions of human well-being.Hence, this paper examines population ageing and economic well-being in Malaysia through the lens of Maqasid al-Shariah. Employing a qualitative approach involving demographic analysis, policy review, and conceptual synthesis, the paper evaluates how the five dimensions of Maqasid al-Shariah; preservation of religion (hifz al-din), life (hifz al-nafs), intellect (hifz al-aql), lineage (hifz al-nasl), and wealth (hifz al- mal); can contribute to sustainable ageing policies. Findings indicate significant gaps in retirement income adequacy, healthcare accessibility, and social support systems. As such, the paper proposes a Maqasid-Driven Ageing Economy Framework that integrates Islamic social finance, and community-based care mechanisms to strengthen economic well-being among older persons. This study contributes to the growing literature on Islamic economics and ageing by providing an alternative paradigm for policy development in Malaysia and other Muslim-majority countries.

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