KUALA LUMPUR, Oct 11 — The care economy emerged as the defining theme on the final day of the Selangor International Business Summit (SIBS) 2025, with the state positioning the sector as a national growth engine rather than a welfare burden.
At the Selangor International Care Summit (SICS) today, Deputy Finance Minister Lim Hui Ying unveiled a three-pronged national strategy to formalise and expand the care sector through affordability, infrastructure, and innovation.
The plan aims to make care services accessible via tax reliefs and targeted aid, strengthen infrastructure through public-private partnerships, and accelerate digital innovation to professionalise care work and create viable careers.
“Financing care is not charity; it is nation building. It is one of the smartest, most strategic investments we can make for Malaysia’s future,” she said at the conference held at the Kuala Lumpur Convention Centre here today.
Lim said the initiative addresses Malaysia’s ageing population and the under-recognised economic value of caregiving.
Expanding participation could unlock up to RM60 billion in additional gross domestic product (GDP), largely through higher female labour force participation and greater social productivity.
The summit coincided with yesterday’s federal Budget 2026 announcement of a RM3,000 income tax exemption on childcare costs, covering preschools and registered transit centres for children up to age 12.
Prime Minister Datuk Seri Anwar Ibrahim said the expanded tax relief, effective from the 2026 assessment year, would ease the burden on working parents while promoting formal childcare and the long-term care sector.
The exemption previously applied only to preschool costs for children aged up to six.
State executive councillor for women empowerment and welfare Anfaal Saari welcomed the move as a “positive springboard” for the LTC industry.
“Government investment in LTC remains low compared with OECD (Organisation for Economic Co-operation and Development) countries, so this is a good start.
“The increase in the eligible age limit from six to 12, including care at preschools and transit centres for kids going from national schools to religious schools, will directly benefit working families,” she told reporters at SICS.
“I hope the government can increase its investment in LTC in the future, and that public-private cooperation can be strengthened to empower the care industry.”
Anfaal said the policy recognises care work as both a social necessity and a viable profession, setting the stage for a more formalised industry.
In a concrete step toward professionalising care work, babysitting services pioneer Kiddocare signed a memorandum of understanding (MOU) with digital health provider HeyDoc Health to expand healthcare benefits to caregivers.
The MOU was signed by Kiddocare chief executive officer Nadira Yusoff and HeyDoc Health chief executive officer Dr Raymond Choy, witnessed by Anfaal.
Under the agreement, Kiddocare’s babysitters will be registered on HeyDoc Health’s subscription-based digital healthcare platform, offering unlimited teleconsultations with accredited doctors, prevention programmes, nationwide panel referrals, and access to pharmacy partners with special rates for family members.
Anfaal said the MOU could reduce the burden on public and private health facilities.
“Physical visits to public and private clinics could decrease by up to 35 per cent. Less severe cases like dengue fever and toothaches can be treated via teleconsultation.
“Doctors would issue electronic prescriptions for nearby pharmacies. The subscription charge is only RM13.99 per month for each babysitter,” she told Media Selangor.
HeyDoc will provide medical teleconsultations for babysitters under Kiddocare, which now has around 3,000 nannies.
Separately, the Retirement Fund (Incorporated), or KWAP, announced a RM20 million micro-financing programme under Budget 2026 to support 3,000 entrepreneurs, especially retirees going back to work due to financial constraints.
