Older consumers represent big economic opportunities, say experts
PETALING JAYA: Malaysia’s rapidly ageing population could be an economic opportunity rather than a social burden if businesses and policymakers adapt quickly to the change, says longevity expert Dr Michael W. Hodin.
The Global Coalition on Ageing (GCOA) chief executive officer said countries that recognise the economic potential of older consumers early could unlock new growth as demographics shift.
“Malaysia is entering a ‘silver economy’ era as seniors live longer, stay healthier and remain active in work and society.
“This means we will have more older adults and fewer younger workers.
“That shift will affect everything from healthcare and labour markets to how companies think about their customers,” Hodin told The Star in an interview.
Globally, the “silver economy” is estimated at US$22 trillion (RM86.33 trillion) and continues to grow as demographics evolve.
Hodin said the longevity dividend is opening up demand across several sectors such as healthcare, insurance, travel, leisure and lifestyle products.
He noted that increased longevity, higher disposable incomes among retirees, and a rising desire for a meaningful life after retirement are the three trends driving growth.
Hodin said GCOA is collaborating with the Malaysian Healthy Ageing Society (MHAS) to organise the Silver Economy Forum this November involving policymakers, experts and industry stakeholders.
MHAS vice-president Dr Wong Teck Wee said longevity, if planned for, is an opportunity for healthier lives, new industries and a more inclusive economy.
He said Malaysia is at a “critical crossroads” and an urgent shift is needed to address the issue.
He stressed the importance of a lifelong wellness approach that equates “healthspan to lifespan”.
“We need more Malaysians to live longer well. Prevention must become part of our public health DNA,” Dr Wong said.
General Insurance Association of Malaysia chief executive officer Chua Kim Soon said travel insurers have already begun adjusting policies to better address the needs of older travellers.
“These plans are designed to cover risks such as pre-existing medical conditions, higher medical costs overseas and trip cancellations due to hospitalisation,” he said when contacted.
He said insurers are also introducing specialised benefits such as coverage for lost prescriptions and Covid-19-related disruptions.
Meanwhile, Association of Private Hospitals Malaysia president Datuk Dr Kuljit Singh said many hospitals are adding senior- friendly design features such as non-slip flooring, ramps and handrails to reduce the risk of falls.
This also includes adopting technologies such as remote monitoring of vital signs and medication adherence to improve care for elderly patients, he added.
Federation of Malaysian Business Associations vice-chairman Nivas Ragavan said some small and medium enterprises have began adapting their services to better serve older consumers.
“This includes home delivery services, personalised customer engagement and facilities that are easier for seniors to access,” he said, adding that some companies are also offering flexible or part-time roles to retirees to tap into their experience.
However, Nivas noted that broader adoption of strategies targeting older consumers is still at an early stage.
Malaysia Inbound Chinese Association president Angie Ng said older travellers are increasingly pursuing specialised interests such as nature photography.
“Malaysia’s rich rainforest biodiversity attracts silver travellers who come here to photograph insects and birdlife,” she said when contacted.
