With a median age of just under 32 years, Malaysia is a nation of youth. Millennials and Gen Z—30.5% of the population—are not just envisioning change but driving it. Yet, rising living costs, unaffordable housing, and healthcare disparities stand in their way, threatening to stall their aspirations.
Our collaborative study with Vero Advocacy reveals over 70% of Malaysian youth are optimistic about their future and confident that their quality of life will improve within five years. Yet, they remain deeply concerned about the rising costs of living, the scarcity of affordable housing, and the challenges within the healthcare system. Addressing these critical issues will require focused, youth-centred policies that align with their unique needs and priorities.
Two areas are paramount for Malaysian youth: affordable housing and accessible healthcare. By leveraging data-driven insights and global comparisons, we can critically assess these challenges and identify effective solutions to empower the younger generations of Malaysia.
Understanding Malaysia’s Youth Demographics
Millennials: Stability Seekers
Millennials, making up 25% of Malaysia’s population, prioritise financial stability and homeownership while juggling career and family demands.
- Employment: Millennials are predominantly employed in finance, technology, and public administration. They value job security and upskilling to adapt to automation.
- Housing: Homeownership remains a key aspiration, though high property costs delay purchases.
- Digital Engagement: Active on Facebook and LinkedIn, leveraging these platforms for networking and advocacy.
Gen Z: Innovators and Advocates
Gen Z, which accounts for 29% of the population, focuses on flexibility, mental health, and meaningful engagement in work and life.
- Employment: Many explore the gig economy, startups, and creative industries, favouring flexibility over traditional career paths.
- Housing: Gen Z prioritises renting, reflecting their preference for mobility and reduced financial commitment.
- Digital Engagement: As digital natives, they dominate platforms like TikTok and Instagram, using them to advocate for climate action, mental health, and social equity.
| Category | Millennials | Gen Z |
| Employment | Stable mid-career roles | Preference for gig work and flexibility |
| Housing | Ownership-driven | Renting-focused |
| Digital Presence | Balanced use of traditional platforms | Thrives on emerging platforms |
Bridging the Gap Between Aspiration and Reality with Affordable Housing
Housing represents independence and stability for Malaysia’s youth, but only 38% are satisfied with its affordability. Rising prices and inadequate rental options highlight the need for systemic reforms.
Key Challenges
- Urban Housing Costs: Cities like Kuala Lumpur and Penang face skyrocketing property prices, pushing homeownership out of reach for many young Malaysians.
- Neglect of Renters: Current policies disproportionately emphasise homeownership, leaving renters—especially Gen Z—without sufficient support.
- Urban Accessibility: Affordable housing projects are often located on the city outskirts, far from employment hubs and public transport, increasing commuting costs.
Case Study: Japan’s Compact Urban Housing Model
Japan’s compact urban housing model offers lessons for Malaysia. By concentrating on housing near transit hubs, Japan curbs urban sprawl, reduces costs, and improves accessibility.
Compact City Initiatives in Japan
Japanese cities have adopted the “compact city” model, concentrating urban functions and residential areas around transportation hubs. This approach aims to curb urban expansion, enhance accessibility, and promote sustainable living. For instance, Sapporo’s Location Normalisation Plan (LNP) seeks to concentrate urban functions in the city centre, especially around transportation hubs, to induce residential development in these areas.
Benefits of the Compact City Model
The compact city model offers several advantages:
- Affordability: By concentrating development, infrastructure costs are reduced, leading to more affordable housing options.
- Accessibility: Proximity to transportation hubs ensures residents have easy access to public transit, reducing reliance on private vehicles.
- Community Engagement: Densely populated areas foster a sense of community and provide better access to amenities and services.
Case Study: Toyama City
Toyama City is a notable example of successful compact city planning. Facing a declining and ageing population, the city implemented a strategy to renovate public transportation and concentrate urban functions around transit hubs. This approach has revitalised the city centre, improved public transport usage, and enhanced the quality of life for residents.
Implications for Malaysia
Malaysia can draw lessons from Japan’s experience by:
- Integrating Housing and Transit: Developing housing projects near public transportation to improve accessibility and reduce commuting times.
- Promoting Mixed-Use Development: Encouraging developments that combine residential, commercial, and recreational spaces to create vibrant communities.
- Implementing Policy Reforms: Adopting policies that support urban densification and the efficient use of land resources.
Current Policies and Gaps in Malaysia’s Housing Policy
Malaysia has implemented programs like:
- MyHome Program: Subsidies for first-time homebuyers.
- PR1MA Scheme: Affordable housing for young professionals.
- Stamp Duty Exemptions: Reduces upfront property purchase costs.
While these initiatives have eased financial pressures for some, they often neglect rental markets and middle-income youth.
Recommendations
- Expand Rent Control: Implement regulations to cap rental prices in high-demand urban areas.
- Public-Private Partnerships: Collaborate with developers to build mixed-income housing near urban centres.
- Incentivise Urban Planning: Prioritise integrated housing projects near public transport and employment hubs.
- Diversify Housing Support: Offer subsidies for renters and buyers, catering to generational differences in housing needs.
Accessible Healthcare: Balancing Cost and Quality
Only 63% of Malaysian youth are satisfied with healthcare, citing high costs, inequities, and limited mental health support as key barriers.
Key Challenges
- Cost Barriers: Private healthcare is prohibitively expensive, while public facilities face resource constraints and long wait times.
- Mental Health Stigma: Gen Z prioritises mental health, yet accessible counselling and awareness programs remain scarce.
- Urban-Rural Divide: Rural areas experience significant disparities in healthcare access due to limited infrastructure.
Case Study: Australia’s Mental Health Reforms
Australia’s Better Access Initiative is a government program designed to improve the treatment and management of mental health conditions by providing subsidised services through Medicare. This initiative allows individuals to access mental health professionals, including psychologists, social workers, and occupational therapists, with the support of Medicare rebates.
Key Features of the Better Access Initiative:
- Integration with Primary Care: General Practitioners (GPs) play a central role by assessing patients, developing Mental Health Treatment Plans, and facilitating referrals to appropriate mental health professionals.
- Subsidised Services: Eligible individuals can receive Medicare rebates for specified psychological services, making mental health care more affordable and accessible.
- Focus on Accessibility: The initiative aims to ensure that individuals, regardless of location, have access to mental health services, addressing disparities in service availability.
Impact and Considerations:
Since its inception, the Better Access Initiative has significantly increased the utilisation of mental health services in Australia, indicating improved accessibility. However, challenges such as the adequacy of session limits and equitable access across different populations have been identified, prompting ongoing evaluations and discussions for improvement.
Implications for Malaysia:
Malaysia can draw valuable lessons from Australia’s experience by:
- Integrating Mental Health into Primary Care: Empowering General Physicians to assess and manage mental health conditions can enhance early detection and intervention.
- Providing Subsidised Services: Implementing subsidy programs can reduce financial barriers, encouraging more individuals to seek mental health support.
- Ensuring Accessibility: Developing strategies to make mental health services available across urban and rural areas can address service disparities.
By adopting similar approaches, Malaysia can work toward a more inclusive and effective mental health care system, reducing stigma and improving overall well-being.
Current Policies and Gaps in Healthcare
Programs like MySalam and PeKa B40 provide critical illness coverage and health screenings for low-income groups. However, middle-income youth often lack sufficient support, particularly for specialised care and mental health.
Recommendations
- Expand Mental Health Services:
- Increase funding for public mental health facilities and professionals.
- Integrate free counselling services in schools, universities, and workplaces.
- Telemedicine for Rural Areas: Develop mobile clinics and telemedicine platforms to bridge urban-rural disparities.
- Subsidise Specialised Care: Provide targeted subsidies for chronic and mental health treatments.
- Normalise Mental Health: Launch nationwide campaigns to reduce stigma and encourage early intervention.
Youth Optimism as a Catalyst for Progress
Despite these challenges, Malaysian youth remain optimistic. Their vision of a future rooted in equity, sustainability, and innovation is a powerful driver for national progress.
Key Priorities for Policymakers
- Foster Collaboration: Engage youth through advisory councils, digital platforms, and leadership programs.
- Address Inequities: Allocate resources equitably to bridge urban-rural divides in housing and healthcare.
- Sustainability as a Core Value: Incentivise green initiatives and integrate environmental priorities into youth policies.
Final Thoughts
Malaysia’s Millennials and Gen Z are not just dreamers—they are doers. Their demands for affordable housing, accessible healthcare, and sustainability reflect a vision for a fairer, more inclusive society. Policymakers must act decisively, embracing youth-driven governance to unlock the full potential of these generations.
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