THIS year, more than 7 per cent of Malaysia's population are aged 65 and above, officially classifying the country as an aged society by common definition.
The rate of ageing will increase in the coming years, and the share of those aged 65 and above is projected to double to 14 per cent by 2044 and 20 per cent by 2056, making it a super-aged society.
The World Bank launched a report titled A Silver Lining: Productive and Inclusive Ageing for Malaysia on Nov 24. Malaysia's ageing population has created a significant opportunity for investment in multiple sectors. Like much of Asia, Malaysia is experiencing a significant demographic transformation.
The age of the population is shifting upwards due to urbanisation, developments in technology and health services.
Shrinking family sizes, coupled with longer life expectancies, have resulted in a growing senior population. This transition point has been made all the more challenging by the Covid-19 pandemic.
Therefore, 2020 is a crucial year for Malaysia to take steps to protect its ageing population and to ensure that they are not left behind in the future.
This growing population of seniors are living longer and consuming more, creating myriad business opportunities not only in the healthcare sector, but also in the technology, mobility, entertainment and tourism, and real estate and housing sectors.
One area where ageing will have an impact on is what exactly is the right level of density in our cities.
Policies to achieve greater density often boil down to attempts by developers to build ever-smaller-sized apartments, unlikely to be suitable for the changing physical needs of older residents, particularly the very old.
Increasing density must be balanced with age-friendly design principles to make downsizing more attractive for the elderly, possibly through incentives in the planning system.
Cities should also incorporate age-friendly principles to make the urban environment more appealing and suitable for older people.
For example, many cities' public transit networks are not fully accessible to the mobility impaired.
The needs of the ageing population include financial and personal security, mental health, a strong healthcare system and self-actualisation.
Meeting and anticipating the changing habits and spending patterns necessitate a shift from traditional to new and innovative solutions.
Business sectors with high growth potential under an ageing population include medical tourism, elderly care, education, transportation, financial services, housing and smart technology.
These silver economy businesses not only serve Malaysian seniors, but also foreign seniors immigrating to Malaysia at increasing rates, often settling in resort cities.
This trend is not unique to Malaysia, which makes future investments in the ageing economy even more lucrative.
Malaysia has a growing domestic demand for ageing services and, due to its seamless connection to Asean markets, an ideal gateway to larger demand in the region. These factors position investors in Malaysia to profit from market shifts related to ageing populations.
And seeking out ways to encourage the involvement of seniors in local life represent far more than just an economic approach. We need to create a longer-living society that involves people of all ages.
From this perspective, the mutualist ecosystem has a role to play in generating new initiatives and encouraging for-profit and non-profit entrepreneurs to innovate and offer solutions that respect individuals and meet their needs.
Many solutions are based on remote surveillance, warning or support systems for people with reduced independence. Other solutions involve filling the individual's surroundings with sensors, or even cameras, to follow and detect movements but are considered inadequate or abnormal.
The stigmatising, if not humiliating, nature of these devices must not be underestimated.
The cost of the equipment and its maintenance, and the complexity of using these products are obstacles to adoption by seniors and their families.
To materialise the potential economic benefits arising from the silver economy, policymakers in Malaysia are emphasising the readiness of our industry landscape and to act in support of healthy ageing via digital revolution in health and care of the elderly.
Along with the provision of employability in an age-friendly built environment, create a connection between recreation and physical and cognitive activities.
With technological and social means, support the innovation of products and services targeted at independent and meaningful living of ageing individuals.
The writer is deputy chief executive officer, Urbanice Malaysia