IN FOCUS: Is it too late to defuse the ‘ticking time bomb’ of Malaysia’s fast-ageing population?

Malaysia’s Elderly Care Infrastructure: The Current Landscape

Malaysia is facing a growing challenge in providing adequate care for its elderly population. According to a United Nations Development Programme (UNDP) report published in June, the country has 393 registered elder care centres and 26 nursing homes. However, an estimated 700 to more than 1,000 facilities operate without proper registration. Despite these numbers, most Malaysian families prefer to care for their elderly at home, a cultural norm that is deeply rooted in the community. Nevertheless, the demand for formal care services is rising rapidly, with many facilities already struggling with long waiting lists. This trend is expected to worsen as the population ages, putting additional pressure on the existing infrastructure.

Challenges Faced by Elder Care Providers

The elder care sector in Malaysia is grappling with significant challenges, including a shortage of beds and the bureaucratic hurdles faced by private operators. Phang Sue Ling, a doctor and co-founder of Genesis Life Care, a long-term care service provider, highlights the dire need for expansion. She estimates that Malaysia has only about 30,000 care centre beds, far fewer than the 31,000 beds Singapore plans to have by 2030, despite Singapore’s smaller size. Phang also points out the complexities of setting up new care centres, citing bureaucratic red tape as a major obstacle. Genesis, which offers services like stroke rehabilitation, dementia care, and palliative care, operates four centres in the Klang Valley, with two of them running at over 90% occupancy.

Bureaucratic Hurdles and Regulatory Issues

One of the key issues plaguing the elder care sector is the fragmented and often cumbersome regulatory environment. Nithiyaraja Selvarajan, founder of Sukha Golden Sanctuary, a day centre for seniors in Petaling Jaya, calls for a uniform licensing regime across state governments and city councils. He criticises the inconsistent regulations imposed by local authorities, which he describes as "little Napoleons" creating unnecessary barriers for operators. Selvarajan estimates that less than 20% of senior living facilities in Malaysia are licensed, highlighting the prevalence of unregistered centres. Both Selvarajan and Phang stress the need for streamlined licensing requirements to encourage more private operators to enter the sector and ease the burden on existing facilities.

Financial Burdens on Operators and The Need for Government Support

Another significant challenge facing elder care providers is financial sustainability. Both Phang and Selvarajan lament the lack of financial support from the government, which makes it difficult for private operators to balance affordability for clients while keeping their businesses afloat. Selvarajan suggests that tax breaks could be a viable solution to alleviate the financial strain. Phang, meanwhile, proposes that the government offer tax exemptions for care centres that take in patients referred by the Department of Social Welfare at subsidised rates. She views this as a potential way to foster collaboration between private operators and the government.

The Role of Welfare Organisations in Providing Elderly Care

Non-governmental organisations (NGOs) and religious groups play a vital role in supplementing the government’s efforts in elderly care. Kenang Budi Welfare Organisation, a traditional old folks’ home in Subang Jaya, is one such example. The home, which operates in a bungalow-style facility, provides free accommodation for seniors in need and relies on public donations and irregular government stipends. Manager Jason Wong notes that the facility can house up to 19 residents, but the demand far exceeds the available spots. Wong also highlights the need for more volunteers to assist with daily operations, as the home struggles to cope with the increasing number of elderly individuals without family support.

The Rise of Luxury Retirement Villages

At the other end of the spectrum, luxury retirement villages like Millennia Village in Seremban offer a glimpse into the future of elderly care in Malaysia. This resort-style facility provides independent living options for seniors, with prices starting at RM6,500 per month for a couple, inclusive of full board and meals. Chairman John Chia observes growing interest from foreigners, particularly from countries like China, Japan, and Singapore, who find the cost of such facilities prohibitive in their home countries. Chia also believes that local seniors could benefit from communal living, as the cost of living in such villages may be lower than maintaining a separate household in cities like Kuala Lumpur. He predicts that as Malaysians live longer and become more affluent, there will be a mindset shift towards embracing communal living options.

In conclusion, Malaysia’s elderly care sector is at a critical juncture. While there is a clear need for expansion and improved infrastructure, the challenges of bureaucracy, financial sustainability, and regulatory inconsistencies must first be addressed. Private operators, NGOs, and luxury retirement villages are stepping in to fill the gaps, but greater government support and streamlined policies are essential to ensure that the growing elderly population receives the care and dignity they deserve.