SERI KEMBANGAN: Malaysia's wellness and healthcare-driven real estate developments have grown at an unprecedented rate and contributed to the country's economy since the pandemic, according to industry insiders.
According to the Global Wellness Institute's (GWI) report, Build Well to Live Well: Wellness Lifestyle Real Estate and Communities, Malaysia's wellness economy, which is among the top 10 markets in the Asia-Pacific, was valued at US$24.4 billion in 2020.
Malaysia ranked 26th out of 150 countries in terms of wellness economy size.
The demand for global wellness real estate market size and share was reportedly valued at US$119 billion 2015 and it ballooned to about US$275 billion in 2020.
The sector's expansion has surpassed both projections and normal economic growth trends.
According to GWI, wellness real estate continued to increase by more than 22 per cent during the pandemic year (2020), while overall construction output decreased by 2.5 per cent.
The market is projected to grow at a compounded annual growth rate of 20.7 per cent to reach over US$863.9 billion by 2028.
KGV International Property Consultants executive director Samuel Tan said that wellness and healthcare are highly specialised industries in which some developers are already active.
According to him, some local hospitals are also joining the bandwagon.
"Not only is this business profitable, it also provides recurring income, which is critical when the market is volatile. Having different business models is part of risk diversification for any company," he told the New Straits Times.
Tan said that operators, particularly from Australia and the West, are attracted to the demand for health and wellness in Malaysia.
He said that health has become a top priority as society becomes more prosperous.
"There is no wealth without health. Not only are locals interested in wellness centres, but several neighbouring countries are also keen due to the cost element. First-worlders are interested because of our climate and plural society. Our safety and language are also major draws," he said.
There is mushrooming of wellness and healthcare-related projects in Klang Valley, such as the RM15 billion KL Wellness City in Bukit Jalil, and The Mines Wellness Hub at Mines Resort City in Seri Kembangan.
Country Heights Holdings Bhd seeks to promote health and wellness at The Mines Wellness Hub through a holistic approach and attract like-minded people from Malaysia and beyond without breaking the budget.
Its founder, Tan Sri Lee Kim Yew, said that even before the COVID-19 pandemic, individuals were spending more money on products that promote better health, nutrition, and immunity.
"Following the virus outbreak, people have been looking for health supplements and wellness products to help them take care of their health and wellbeing.
Lee said the pandemic has changed the way the world views health and wellness.
Besides physical health, it also entails sound mental health and a stress-free life, he said.
According to Lee, a large number of wealthy retirees from Europe and Asia are visiting Malaysia for health and wellness treatments.
At the same time, they want to live here and enjoy a high standard of living, he told the NST.
"Malaysian real estate remains among the most affordable in the world. I've been in the business for decades and understand what foreigners want. Malaysia is both safe and economical for expats.
"Following the pandemic, I've noticed an increase in the number of expatriates visiting Malaysia to seek treatment for a variety of health conditions. I regard this as a major opportunity for the country, and we must act quickly and decisively," he said.