The Health | October, 2019
08
Health Business
Is the workforce disappearing
in Southeast Asia?
A data presentation from MERCK Regional Vice President, Andre Musto reveals a worrisome future
H
ALF a decade ago, man left
a footprint on the surface
of the moon, an indelible
imprint marking a milestone
achievement for mankind.
This was only because of
the advancement in science, technology
and the monumental contribution from
the project team – the workforce. However,
within a similar timespan, we are seeing a
marked decline in fertility rates in Southeast
Asia, a worrying red flag to a disappearing
overall workforce. A white paper titled, “The
Disappearing Workforce? Why countries in
Southeast Asia need to think about fertility
rates before it’s too late”, reveals that the
fertility rate in Southeast Asia has shown a
drastic decline from 5.5 in 1970 to a historic
low of 2.4 in 2015.
“The total fertility rate has declined by
more than half in just under 50 years and this
ultimately points to an eventual economic
decline,” says Andre Musto, Regional Vice
President – APAC, Merck Biopharma. He
added, “Generally, socioeconomic develop-
ment is often found to be associated with
falling birth rates.”
Musto had presented this paper at the
recent Insight 2019 Conference, organised
by the Malaysian Healthcare Travel Council,
a government agency under the umbrella of
the Ministry of Finance Malaysia.
The white paper was an outcome of a
study for Southeast Asia commissioned by
Merck, in collaboration with the Economist
Intelligence Unit (EIU), focusing on three
countries - Malaysia, Thailand and Vietnam,
to understand the factors behind declining
birth rates and more importantly, what
action the respective countries could take
to address this looming issue.
Infertility results
in lesser work force
This issue leads to a demographic change
which leads to an ageing population. Hence
greater old-age dependency will put the
workforce that has been driving the eco-
nomic growth at risk.
With rapid urbanisation and migration,
having children might not be a viable options
to some couples. “Therefore, one can assume
that the decline in fertility phenomena is
very much led by the developed and richer
nations.
Higher cost of education and increased
cost of living means more couples are think-
ing of quality rather than quantity. This issue
causes couples to delay their child bearing
until they are more financially stable.”
Musto believes that
building a family
friendly society
can help with the
economic growth of a
country.
We are less aware
of our infertility
Awareness of how fertility declines with
age is poor in Southeast Asia and hence the
idea of assisted reproductive technology is
still considered taboo by many, not the first
option for couples having problems bearing
a child.
Partly from this poor awareness, the
infertility rate has shown a spike in the
general public. At the age of 35, the fertil-
ity rate reduces dramatically and at the age
of 40 there’s another big chasm. That said,
delaying childbearing can spell disaster for
the future workforce.
Recommendations for
consideration
The white paper puts forward recommenda-
tions that countries with low fertility rates
should focus on family friendly policies as a
start. Fertility is an investment and requires
long-term commitment to be impactful. Poli-
cies aimed towards building a family friendly
society could include parental leave for both
the mother and the father as well as workplace
regulations to help bring about better work
life balance and flexibility, such as setting up
Graph showing that on average,
there is a decline in female fertility
starting in the mid-thirties, with
lower fertility especially after the
age of 35.
Therefore, one will
assume that the
decline in fertility
phenomena is led
very much by the
developed and
richer nations.”
– Andre Musto
child care centres at the workplace.
Additionally, decent housing plays a vital
role in encouraging family life. Government
assistance could be in a form of housing
grants or subsidies to eligible young couples,
with criteria based on income, time since
marriage, and whether they are expecting a
child or even ensure citizens allocate funds
to pay for their houses.
We need to act, and act now
In conclusion, everybody has a part to play
in raising the fertility rate in Malaysia as it
could take a toll on the economy. The country
needs to maintain its population in order to
move progressively forward economically.
We need to ensure the workforce numbers
are sustainable, in order to preserve the
health of the nation for our future genera-
tions. — The Health