Abstract

A fertility rate is a measure of the average number of children a woman will have during her childbearing years. Malaysia is now facing a population crisis and the fertility rate continues to decline. This situation will have implications for the age structure of the population where percentages of senior citizens are higher than percentages of people aged below 5 years old. Malaysia is expected to reach aging population status by the year 2035. As the aging population has a very long average life expectancy, the government needs to spend a lot on medical costs for senior citizens and need to increase budgets for pensions. The government may be required to increase tax revenues to support the growing older population. The falling fertility rate requires proper control by relevant authorities, especially through planning and implementation of strategic and effective measures. Hence, this paper aims to develop a fertility index using correlation and Shannon's entropy method. The results show that Selangor, Johor, and Sarawak are among the states with the highest values of the fertility index. On the other end of the spectrum, Terengganu, W.P. Labuan, and Perlis are ranked in the last positions according to the fertility index. The information generated from the results in this study can be used as a primary source for the government to design appropriate policies to mitigate dwindling fertility rates among Malaysian women.

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