By Anneliza Zainal
As Malaysia grapples with the challenges posed by its ageing population, a critical question that the country needs to address is on effective management of the needs of its elderly citizens within a framework, while fostering inclusive and dignified living environments.
The solution may very well lie in the enforcement of the various governing Acts and the creation of a model that attracts developers to provide viable alternatives for the housing and care requirements of senior citizens.
In an article, “What is a viable model for retirement villages in Malaysia?” published in iProperty, Dr Foo Chee Hung compares and discusses the retirement home model that is implemented in Australia and how it compares to Malaysia.
“As a developing Asian society of large families and strong community attachment, the elderly in Malaysia prefer to live close to their children”, said Foo. The concept of retirement villages in Malaysia is often misunderstood, with many mistaking them for old folks’ homes.
Socially, multi-generational living is more common in Asian countries, and there is a lack of awareness about the benefits of retirement villages. The high cost of such development makes retirement villages accessible mainly for the high to mid-high-income groups, while lower-income groups struggle to find affordable senior living residence and facilities.
On a comparison note with Australia, the Australian Bureau of Statistics, shared that its penetration rate of retirement villages is relatively low with only around 6 percent with approximately 221,910 Australians aged 65 and above living in retirement villages.
Like most Asians, older Australians prefer to age in place due to high homeownership rates, community attachment, and the desire for psychological health and quality of life. Age-specific housing options such as residential aged care and retirement living, may be required by some seniors.
Retirement villages in Australia offer independent living communities with shared recreational facilities and unlike residential aged care facilities, healthcare and support are additional amenities.
The Australian payment model typically involves a Deferred Management Fee (DMF), where residents pay an ongoing contribution that is repaid, minus the DMF, upon leaving the village. The resale gain depends on the fluctuation of property prices.
However, the Australian model cannot be directly duplicated in Malaysia due to cultural and economic differences. Malaysian society values living close to their children, and the homeownership rate is relatively high (76.9 percent), but the purchasing power parity is lower compared to Australia (USD 29,617), with a smaller population aged 65 (at 6.8 percent).
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At the same time, the acceptance of retirement villages in Malaysia is also uncertain due to cultural factors, lack of policy support, limited talent pool, and financial insecurity. According to UiTM survey among 1,067 respondents in Selangor, showed that Malaysian Baby Boomers (52.3 percent) and Generation X (43.3 percent), prefer to age in place rather than moving to retirement or age-restricted communities (Baby Boomers – 18.2 percent; Gen X – 39.3 percent).
By contrast, independent living is most preferred by Generation Y (33.9 percent) and Generation Z (34.1 percent). Following that, progress on the development of retirement villages has been slow in Malaysia, due to factors such as lack of developer interest, high upfront and maintenance costs, and lukewarm public response.
To develop a suitable model for retirement villages in Malaysia, developers need to study the target market’s incomes and preferences, as well as the competitiveness of retirement villages against home care providers and potential foreign retirees. Senior living facilities in Malaysia should provide both accommodation and care services, catering to different levels of care from independent living to skilled nursing.
Developers can explore options such as multi-generation living, independent living, assisted living, and skilled nursing within their developments. Co-locating senior-friendly housing with care facilities or incorporating care services as a built-in option can mitigate risks and increase the value of the real estate product.
In Malaysia, genuine retirement villages, such as Domitys Bangsar, have been thoughtfully designed and planned to be senior friendly and are marketed as a luxury retirement residence.
Owned by Plenitude Berhad and managed by The Ascott Limited, it is based on an independent senior living concept, targeting senior citizens, who do not require medical or physical assistance for daily activities. Domitys Bangsar offers a unique home living environment that mirrors the comfort and privacy of one’s own home, where residents can enjoy their golden years with a sense of familiarity and ease.
Domitys Bangsar, a premium senior living residence, offers a comfortable living for seniors during their golden years. The residence offers a comprehensive housing solution, emphasising safety and security while fostering a supportive and engaging community. Designed to cater to diverse needs, Domitys provides thoughtfully designed apartments with fully equipped bathrooms and kitchens promoting effortless daily living and active lifestyle.
Committed to offering exceptional in-residence facilities and services, Domitys Bangsar boasts a fully-equipped fitness centre, rejuvenation spa services, and on-site restaurants serving delightful and healthy menus. The swimming pool and hydrotherapy options promote well-being and immunity, while the multi-media room serves as a hub for entertainment and various planned activities.
Additionally, residents can indulge in beauty treatment, massages and physiotherapy sessions, all contributing to their overall well-being.
With the increasing demand on assisted living or accommodation with care services, Domitys Bangsar is expanding its offerings to include assisted living to provide seniors with a holistic senior living solution, partnering with a reputable third party care service provider. This means that seniors now have the option to opt for the independent living packages or assisted living packages.
The available rates and packages of these services are subjective to the inclusions and range of services required by the residents.
To attract potential senior residents, retirement villages need to be designed to meet the physical and daily needs of the elderly, offer support services, and provide recreational facilities. Making retirement villages more affordable through subsidies or government-built facilities and introducing flexible short-term leases, could broaden their appeal and meet the needs of a wider segment of the population.
In order to address the needs of the ageing population, Malaysia should enforce the Private Aged Healthcare and Services Act 2018 by the Ministry of Health. With a significant increase in the proportion of seniors living alone, proper legal frameworks and policies are necessary to provide the elderly with suitable living arrangements that cater to their abilities.
This regulatory Act needs to adequately regulate the development of retirement villages and demonstrate its commitment to tackling issues related to an ageing nation. The establishment of retirement villages will address the housing and care needs of the elderly but also create employment opportunities, generate economic growth, and stimulate local businesses.
Moreover, they foster intergenerational connections, promote social inclusion, and contribute to the overall well-being of the community. Retirement villages serve as hubs of knowledge, experience, and wisdom, where seniors can actively participate in society and share their expertise with younger generations.
However, the financial preparation to ascertain for an active, comfortable and perhaps even luxurious, senior living or post-retirement lifestyle, may not be adequate, if not planned early on.
Malaysia University of Science and Technology Research and Innovation provost Prof Geoffrey Williams mooted full-scale pension reforms, including a new “Malaysia Superfund” to provide a “universal basic pension” for this particular group.
He further claims that this can be done by merging existing government social security schemes, pension bodies and unclaimed assets, where the joint held assets and money amounted to RM321bil. In a survey conducted by Sun Life Malaysia on retirement, it was discovered that many underestimated the funds needed for their retirement life.
Sixty-three percent of the respondents cited their biggest fear as having insufficient funds to live a comfortable retirement. Out of the 1853 respondents polled in the survey called “Kembara Bersara” showed that those who are yet to retire mainly worry about insufficient funds (63 percent) and ageing (57 percent); while those who are currently retired mainly worry about ageing (61 percent), illnesses & disabilities (58 percent), and medical expenses (45 percent).
Interesting to note from this survey is that 47 percent of the respondents were open to retirement homes, with private retirement homes being their favoured choice. It was also heartening to note that 96 percent of the respondents said they want to take care of their parents — with 74 percent indicating they are doing so out of love and duty for their parents.
This gives private senior living homes or retirement villages a platform for growth and acceptance in Malaysia. With greater awareness about independent and active retirement living in the golden years, more people are beginning to plan ahead for their retirement days. Malaysia has promise in becoming a haven for retirees, with its blend of active living, healthcare, and tourism.
In an article in its GoBankingRates section recently, Nasdaq said that based on data from the United Nations Pacific-Asia Region Group and gross domestic product (GDP) from WorldPopulationReview, Malaysia ranks first in a list of the 10 safest places to retire in Asia, scoring 1.471 global peace index and a US$1,066 (RM4,955) average monthly cost of living.
With its well-established infrastructure, affordable cost of living, high-quality lifestyle, and thriving medical tourism sector, Malaysia possesses the potential to become the ultimate retirement destination for both local and foreign buyers, igniting growth in the retirement village industry.
While there is still a lot of work to be done, the concerted efforts of the government, developers, and the public have yielded promising developments in the market. The rising awareness, interest, and debates surrounding senior living fuel the hope that the Silver Economy will flourish, allowing seniors to age gracefully and with the dignity they deserve. The stage is set for Malaysia to shine as a haven for retirees, where the golden years truly radiate with vitality and contentment.
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