Ignoring Mental Health Issues in Malaysia Could Cost Up to RM34 Billion in Productivity Losses by 2030

Mental health conditions are becoming an increasingly significant economic and social challenge in Malaysia, with new findings showing that failing to address the issue early could result in productivity losses of up to RM34 billion by 2030.

According to The Value of Mental Health report by Zurich Insurance Group, more than 4 million Malaysians could be living with mental health conditions by 2030, equivalent to around 12% of the population. The report highlights how the true cost of mental illness extends far beyond healthcare spending, heavily affecting individuals, families, employers, and the wider economy through reduced wellbeing, lower workforce participation, and lost productivity.

The study analysed mental health impacts across six countries including Malaysia, Australia, Chile, Germany, the United Arab Emirates, and the United Kingdom.

Locally, productivity losses linked to mental health conditions are projected to reach RM34 billion by 2030, representing approximately 1.4% of Malaysia’s GDP. The report noted that 95% of these productivity losses are driven by labour market disengagement, where individuals either leave employment, struggle to return to work, or never fully enter the workforce due to mental health challenges.

Alison Martin, CEO Life, Health and Bank Distribution at Zurich, said early intervention is crucial in preventing temporary distress from becoming long-term social and workforce disengagement.

She explained that companies have an important role to play in building more resilient protection systems, adding that around one-third of employees who receive early rehabilitation support through Zurich’s services are able to remain employed instead of exiting the workforce entirely.

Meanwhile, Lee Han Boon, Chief Proposition Management Officer (Life Segment) of Zurich Malaysia, noted that mental illness in Malaysia is still often managed quietly, with many individuals only seeking support once the situation becomes severe.

The report also revealed the significant hidden burden carried by families and caregivers. By 2030, Malaysians are projected to provide more than 123 million hours of unpaid mental health-related care annually, equivalent to around RM3 billion in informal care value.

Individuals living with mental health conditions in Malaysia are estimated to lose an average of 62.5 days of healthy life every year. Overall wellbeing losses linked to mental health conditions and self-harm could reach nearly RM109 billion by 2030.

In addition, Malaysians with mental health conditions are projected to be 18% less likely to be employed compared to those without such conditions, with employment rates estimated at 56% versus 74%.

The report also highlighted concerns surrounding access to professional care. Up to four in five Malaysians with mental health disorders may not be receiving professional treatment, while 42% of mental health treatment costs are expected to be paid out of pocket by individuals and families.

Zurich’s findings suggest that earlier support systems, faster intervention, improved return-to-work pathways, and stronger mental health accessibility could help reduce long-term economic and social impacts while improving overall wellbeing and workforce resilience.

The full report, The Value of Mental Health, examines the long-term impact of mental health conditions on people, productivity, and protection systems through 2030 across both developed and emerging markets.