Upscale retirement homes in Malaysia: a double-edged sword?

 

From R Thanaseelen

As Malaysians become increasingly affluent and enter their twilight years, upscale retirement homes – to the tune of RM6,000 per month – have mushroomed, offering an option to active seniors who are downsizing as well as those who require a little more support with their day-to-day living.

In the past few years alone, many businesses have invested in such homes in the Klang Valley, not to mention other states in Malaysia.

In fact, following the Covid-19 pandemic, many hotels that lost business or had to close altogether saw new opportunities such as this. But is this a long-term sustainable and equitable proposition, or is it purely profiteering at the expense of our ordinary senior folks?

With Malaysia fast becoming an ageing nation according to the World Bank and United Nations, 1,400 private aged care homes have been established in the country to cater to this need, according to reports. But how many cater for the common people?

Reports state the market for upscale at-home care, home-based caregivers and basic nursing homes alone could be worth RM2 billion currently. They cater to empty nesters who are slightly older but still active and may sell their big houses and move to apartments.

A recent survey by the National Population and Family Development Board Malaysia revealed that about 70% of elderly ordinary Malaysians stay with their children or extended family.

But these living arrangements may soon change, especially with Malaysia facing a “brain drain” exodus of professionals – 1.86 million Malaysians currently live abroad, according to former human resources minister V Sivakumar.

Also gone are the days of the sandwich generation, where individuals juggled caring for their ageing parents and their own children simultaneously. The emergence of generations Z and alpha, characterised by a more carefree and individualistic attitude, signifies a shift in societal norms.

These younger generations are perceived as less likely to take on the responsibility of caring for their elderly parents, posing a significant question: where will the ordinary golden citizens in the M40 group, and the worse-off B40 group, go?

With many of these groups already having minimal savings in their EPF accounts and facing longer lives due to improved healthcare, their future living conditions are uncertain. The reality is stark: with luxury retirement homes starting at exorbitant fees, such options are unattainable for most Malaysians, catering only to the upper crust of society.

Additionally, the proliferation of luxury retirement homes raises questions about their alignment with the UN sustainable development goals (SDGs) for the betterment of all Malaysians. SDG 3, which aims to ensure healthy lives and promote well-being for all at all ages, and SDG 10, which focusses on reducing inequalities, are particularly relevant.

The skewed approach of enhancing senior citizen welfare through luxury developments does not align with these goals as it exacerbates social inequality and neglects the needs of the less affluent elderly.

The government must redouble efforts to streamline this approach. The only palpable solution is hastening the impending Senior Citizens Bill – a legal and mandatory crucial step towards addressing these issues.

The bill must ensure that affordable and accessible aged care options are available to all Malaysians, not just the wealthy few.

This includes providing financial support and incentives for affordable aged care homes and ensuring that these homes meet high standards of care and comfort.

Suffice to say, private companies venturing into the aged care market must balance profitability with social responsibility.

They have a moral duty to invest in affordable aged care solutions and support community-based care models that allow seniors to age in grace, surrounded by their families and communities.

Malaysia can look to Australia and Singapore for valuable insights into developing a robust and inclusive retirement village industry.

Australia, with its well-developed and mature retirement market, is a global benchmark for best practices.

Its retirement villages are supported by a world-leading legislative and quality framework and substantial investment in research. Malaysia’s ageing society would benefit from researching the Australian model and tailoring its own solutions.

Singapore provides another useful example. In 2018, it officiated its first publicly funded retirement village, which co-locates childcare and senior centres in one integrated development. This promotes the concept of active ageing, a key aspect of senior living.

Singapore’s model demonstrates the benefits of integrating aged care with other community services, fostering intergenerational interaction and community engagement.

In the final analysis, the government, businesses and society must work together to ensure that the golden years of all Malaysians are lived with dignity, comfort and joy.

It is our seniors’ constitutional human right! - FMT

R Thanaseelen is an assistant professor at Universiti Tunku Abdul Rahman.

The views expressed are those of the writer and do not necessarily reflect those of MMKtT.