Malaysia senior-living sector needs long-term private capital, says Rehda Institute study
A new analysis by Rehda Institute's David S. Chong argues that Malaysia's senior-living market requires patient, long-term private capital rather than a conventional launch-and-sell approach. Drawing on a 2024 roundtable and a 2025 study trip to Melbourne, the report identifies four openings for pri
Malaysia must develop a mature senior-living ecosystem before the real estate component can follow, according to a two-part analysis by David S. Chong of Rehda Institute. Drawing on a February 2024 roundtable on senior living and a March 2025 study trip to Melbourne, Chong argues that private capital should take a long-term view rather than treating the sector as a conventional property project.
Data from the Department of Statistics Malaysia, cited in Parliament in July, shows that Malaysians aged 65 and above made up 8.0% of the population in 2025, with that share projected to reach 10.4% by 2035. However, paying demand remains narrower. At the roundtable, Foo Chee Hung of MKH Berhad benchmarked Malaysia against Australia and concluded that retirement villages are still a niche market. Rahimah Ibrahim of UPM's Malaysian Research Institute on Ageing noted that most older Malaysians prefer to age in place, but low- and middle-income households already struggle to meet housing needs.
During the Melbourne trip, Phil Burns of Sinclair Brook cautioned that senior living is a 40-year project, not a four-year one. First-sale profit is usually lower than in conventional residential development, but the operator retains a business earning service, resale and exit fees. Lenders want financial strength and operating capability, and selling the project like conventional real estate can backfire. On design, Harry Jackson of K2LD Architects advocated homely settings through small households and dementia-friendly design tailored to Malaysian customs.
Closer to home, Re-U Living, part of the IGB Group, offers one local example. Chief executive Estee Tan says it began by converting a block of MiCasa All Suites Hotel into a premium assisted-living facility. Before a resident arrives, a clinical assessment reviews medical history, care needs and lifestyle preferences. A hotel team handles housekeeping, catering and security, while nurses and caregivers provide care. Tan argues that a warm hotel-apartment setting replaces the stigma of abandonment with dignity, and that technology should be an invisible shield supporting safety while leaving empathy to people.
Chong identifies four openings for private capital. The first is design: mainstream housing can incorporate lifetime suitability through step-free entrances, wider doorways and reinforced bathroom walls. The second is operating expertise: developer–operator partnerships are important, as seen in Care Collective in Kuching, developed by Care Concierge with Elica Equity. The third is adaptive reuse: converting existing buildings, as Re-U Living did, can lower entry costs and locate facilities in established neighbourhoods. The fourth is overseas retirees: Japan and Singapore are potential source markets that could sustain early operators and help develop caregiver training and geriatric expertise.
Chong argues that foreign and affluent Malaysian residents could help sustain early operators, and as providers scale up, their expertise and potentially lower unit costs could benefit mid-market and public facilities. However, he stresses that a clear and stable long-stay visa policy is essential. The private sector should study which care services have real demand, partner with experienced operators, secure patient capital and budget for the caregiver workforce. As Martin Yap told the roundtable, large funds need sufficient profitability to invest, and the private sector must help develop the expertise the industry needs to mature.
