This article first appeared in The Edge Malaysia Weekly on May 18, 2026 - May 24, 2026

As Malaysia edges closer to aged-nation status, the cost of growing old is coming into sharper focus, raising a difficult question for households across the country: can Malaysians afford to age with dignity?

Principal Asset Management Bhd CEO Munirah Khairuddin says her mother’s home nursing care costs between RM6,000 and RM7,000 a month.

“That’s just for nursing. When you compare it with senior living, the cost may not be very different,” she says. “Ageing is becoming increasingly expensive, especially when it involves nursing care.”

While the private senior-living industry has expanded rapidly — from independent-living retirement villages to assisted-living centres and continuing-care communities — affordability remains a significant barrier for many Malaysians.

According to JLL Malaysia, private senior-living options typically cost RM5,500 to RM10,000 a month, depending on the level of care required. Government-run homes are far cheaper, with monthly fees starting from around RM300, though these usually provide only basic shared accommodation and minimal care.

Between these two options lies what industry players increasingly describe as the “missing middle” — a lack of reasonably priced senior-living options for middle-income Malaysians.

JLL Malaysia head of research and consultancy Yulia Nikulicheva says there is a significant gap in the market for middle-income households, which seek affordable but basic quality care. She says demand is strong for mid-market offerings such as convenient locations near family or workplaces; basic care services, including on-site medical support, emergency outreach and assistance with medical appointments; as well as flexible on-demand options such as senior daycare, part-time caretakers and rehabilitation care.

The senior-living industry may be slowly taking shape in Malaysia, but the real question is financial: who can actually afford it, and how are Malaysians expected to pay for it?

Most private senior-living projects in Malaysia are geared towards retirees with substantial savings, as these are more expensive to operate than conventional residential developments, driven by ongoing costs such as staffing, nursing care, meals, transport, activities and healthcare support.

“Senior-living projects are heavily driven by operating costs, not just construction and premises,” says Nikulicheva. “Ongoing expenses such as nursing care, 24-hour support and specialised services make them more resource-intensive and costly to run.”

JLL Malaysia senior member of the research and consultancy department Geena Poon says location and design requirements such as low-density, residential-style environments add to costs.

That is partly why many developers are focusing on the premium segment, with more projects being built in the suburban areas, and more operators are diversifying into additional services, such as rehabilitation and daycare, to remain viable.

Nonetheless, Poon says, the demand for senior living and aged care in Malaysia has steadily increased over the past five to 10 years, driven primarily by an ageing population and a longer life expectancy.

“The sector is seeing increased participation from both property developers and hospitality players, with more premium senior-living concepts entering the market. Hotel operators are expanding into senior living, particularly for affluent retirees, such as Domitys Bangsar under the Ascott brand, KL Wellness City, and ReU Living under MiCasa All Suites,” Poon notes. “Local developers are also moving into the sector, including UOA Development Bhd (KL:UOADEV), which has expanded into senior living under its Komune brand in Cheras. Several developers are also promoting multigenerational living by integrating aged-care facilities into residential developments.”

She highlights that urban centres such as Kuala Lumpur and Penang island remain key demand hubs, as they offer higher household incomes and better access to healthcare facilities.

The upward trajectory is also well supported by a shift in mindset among single professionals and affluent retirees. By planning early for retirement and maintaining higher health awareness, these groups are driving a greater acceptance of modern senior living and a more active approach to post-retirement lifestyles.

While many private establishments are targeting mid- to high-income earners, there is another problem: many are not saving enough.

According to Principal Asset’s Munirah, the biggest misconception Malaysians have is that retirement is one long, undifferentiated phase. Instead, she says, people should think of retirement in stages.

“The years from ages 60 to 70 may be one kind of retirement. From 70 to 80, you may need more support. From 80 to 90, you may need care,” she says.

The problem is that most Malaysians plan only for the first stage.

“People think retirement planning is about enjoying life after you retire. But beyond that, as you age, it becomes about care. That care can be expensive,” she says.

According to her, the three biggest financial risks are longevity, healthcare inflation and the increasing level of care required in old age.

Malaysians are living longer than before. At the same time, healthcare costs have risen sharply.

“Healthcare inflation has doubled in the last one or two years. Hospital costs have risen, insurance premiums have gone up, and the cost of care keeps increasing,” says Munirah.

She notes that ageing at home is not necessarily much cheaper. Many Malaysians assume it is the more affordable option, but costs can rise quickly once an older person needs regular help.

Families may have to hire a live-in helper, modify the home, pay for transport to medical appointments and, increasingly, engage professional nurses or caregivers.

For adult children juggling work and family responsibilities, the arrangement can become both financially and emotionally difficult.

“Ultimately, care is care. Whether it is at home or in a senior-living centre, someone has to pay for it,” says Munirah.

At the root of the issue is a larger problem: most Malaysians lack adequate retirement savings.

The Employees Provident Fund (EPF) recommends at least RM390,000 by age 60 as a basic retirement sum, with higher tiers of RM650,000 (adequate) and RM1.3 million (enhanced) to reflect different needs. Even these amounts may fall short if a person requires several years of assisted living or nursing care.

At RM7,000 a month, for instance, five years of assisted living alone would cost more than RM400,000. Ten years would cost RM840,000 — more than twice EPF’s basic retirement savings target.

Munirah notes that Malaysians need to stop treating retirement savings as one general-purpose fund.

“People lump everything together — their child’s education, wedding, retirement and holidays. That is wrong. Your savings need to be purposeful,” says Munirah.

Instead, she believes people should set aside different pools of money for different life stages and goals.

A useful benchmark is the income replacement ratio — the share of pre-retirement income needed in retirement. The World Bank recommends a ratio of about 70%, meaning someone earning RM10,000 a month before retirement would ideally have around RM7,000 a month after.

Munirah says Malaysia’s ratio is closer to 35%, well below what is considered adequate and far from enough to cover the cost of senior living.

If the cost of ageing continues to rise, where will the money come from? For some retirees, property may be part of the answer, according to Munirah.

Homes may need to be treated not just as places to live, but as financial assets. A retiree who sells a larger family home in the Klang Valley, for example, could use part of the proceeds to move into a smaller, more manageable property or a senior-living development, while keeping the rest as savings.

For homeowners who have spent decades building housing wealth, downsizing may be one of the few realistic ways to fund retirement and future care needs.

Munirah believes more Malaysians may need to take this approach. “Maybe one needs to cut down on expenses. Cash out on those properties that you have. Put more into savings and investments,” she advises.

Malaysia has long been a nation of aspiring homeowners. Yet in retirement, that property is often left underutilised, even when it no longer meets older people’s needs.

In more mature markets such as Australia and the US, retirees often tap housing wealth through reverse mortgages, equity-release schemes or by downsizing. Malaysia has yet to develop such financing tools at scale.

Nikulicheva says the country will need more creative financing options. JLL notes that most senior-living products in Malaysia still rely on straightforward monthly rentals or, less commonly, upfront leases, with alternative structures remaining underdeveloped. In Australia, says Poon, a wider range of options exists, including instalment-based plans, government-supported schemes and equity-release models.

Introducing similar mechanisms in Malaysia could improve affordability and access. But not every retiree will have a home to monetise or significant housing wealth to draw on. For many middle-income Malaysians, the challenge is more immediate: how to pay for care when neither savings nor property are likely to be enough.

Ultimately, the greatest hurdle may not be persuading affluent Malaysians to move into senior living; that market already exists.

The bigger task is creating options for the far larger group of middle-income Malaysians who need some level of care but cannot afford to pay RM8,000 to RM10,000 a month.

JLL sees strong demand for more affordable, mid-market options that offer basic healthcare support, emergency assistance and some degree of independence — without the cost of premium facilities. These could be located closer to family or workplaces, with more flexible arrangements such as part-time care, daycare services and on-demand nursing.

Nikulicheva says people are looking for convenient locations near family, some level of medical support and greater flexibility, but at a price they can afford.

There is also likely to be growing demand for “ageing in place” models that allow people to live in their own homes for longer while receiving additional support.

The problem is that the market is still nascent.Private operators say there is limited clarity on regulation, licensing and approvals. Developers also face high land costs and rising staffing expenses, while a shortage of caregivers remains acute.

Munirah believes the issue goes beyond property or finance.

“We don’t like to think about ageing. We plan for holidays, we plan for our children, but we don’t plan for the possibility that one day we may need care,” she says.

That may help explain why the country still struggles to talk openly about senior living. Yet Malaysia is ageing too quickly to avoid the conversation.

The question is no longer whether Malaysians will need more care as they grow older, but whether the country can build a system that ordinary households — not just the wealthy — can afford.

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