The investment climate created by the COVID-19 pandemic has demanded strong stomachs as fortune has drained from some sectors overnight and seen others flourish with opportunity. E.g. Aged Care Residential Homes. Irrespective of the sector, COVID-19 has accelerated an emerging set of risks that are encouraging private market investors to reconsider their overall investment strategies, and to enhance their diligence and risk assessment processes to evaluate individual opportunities. Some opportunities of which seem remarkably approachable considering the ageing statistics in Malaysia.
Malaysia is currently facing the prospect of an aging population, and the latest statistical data predicted this to be happening as soon as in 2030. (Taken from Share of aging population Malaysia 2014-2019 Published by R. Hirschmann, Dec 9, 2019).
What is an ageing population?
An ageing population is defined as one in which those aged 65 years and above make up at least 15 percent of the total population. According to a statement by Malaysia’s Chief Statistician on July 2019, the 15 percent threshold would be crossed in 2030. The past ten years have seen a change in Malaysia’s age structure. The share of the population between 0 to 14 years had been decreasing steadily, while the inverse was true for those aged 65 and above. The average age of the Malaysian population reflected this trend, and was expected to reach 34.1 years in 2030, up from 28.2 years in 2015.
Are we ready?
Academics fear that Malaysian society would not be ready to meet the needs of a rapidly aging society. The demand for nursing beds in Petaling Jaya alone is said to be >3000. Are we ready? No! Is there opportunity? Yes!
Let’s talk about the future, shall we?
Enter Golden Roots.
A licensed Premium Assisted-Living Facility that encompasses a 360* holistic perspective towards Aged Care Services with a mission to re-brand the aged-care industry in Malaysia. Headquartered at SS3 Petaling Jaya, their 14,000sqft haven is set to challenge the norm of which the stigma of “Old Folks Home” still dwells. They officially opened their doors in June 2020 and are now reaching almost full capacity. So, what drives the ageing traffic to Golden Roots? It has to definitely be its warmth, ambience and system. What’s even more interesting is that it has started reaping profits within the first quarter of its operations!
The aged care sector offers everything an investor could want in an investment. There is a strong demand for the services and a market that continues to grow.
Okay, well, what’s the problem?
Considering all positive points of the ageing sector and why we should dive into it right away, running an aged care business can be extremely challenging & stressful. Licensing, staffing, training and even the right type of premise can remain mind-boggling. However, Kudos to the Golden Roots team by managing to surpass those hurdles to further understand, execute and create an Easy Growth Investor Scheme (EGIS) where they target to expand to at least 20 centers by mid-2022. That’s less than 2 years!
When conducting a recent community survey, most elders say that they have a substantial amount of savings which they worry will deteriorate over time and prefer to invest into sectors which seem promising. After much thought and due diligence, investing into aged care is definitely a good & safe option considering the escalating demand and improving margins.
See what others have to say about Golden Roots.
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For Aged Care investment opportunities,
click here ----> https://bit.ly/3fQPI08
or kindly contact
Mr Pradeep @ +6010 881 8806
Mr Adam Teoh @ +6016 338 1129