Changes in population dynamics due to lower fertility and mortality rates, and longer life expectancy have contributed to an ageing population across the world. Initially experienced in developed countries, population ageing is now becoming more apparent in developing countries as well. This thesis investigates the implications of population dynamics, in particular population ageing on Malaysia’s economic growth and its goal of becoming a high-income and advanced nation by 2020. Although the effect of ageing on economic growth takes several paths, the impact on human capital is critical as the latter has been seen as the ‘engine of economic growth’.