RMK13 and the Future of Malaysian Eldercare: Our Industry’s Greatest Opportunity

As one of Malaysia’s few nursing homes, we share our hopes for the transformative changes that RMK13 could bring to eldercare – and why this matters for every Malaysian family preparing for our aging nation future.

The announcement of RMK13 on July 31, 2025 marked a historic moment for Malaysian healthcare – particularly for eldercare providers like us at BIGTREE Medicare & Nursing Home. For the first time in Malaysia’s development planning history, Long-Term Care (LTC) has been recognised as a national strategy (Strategy D2.1), with RM40 billion allocated to the health sector over five years.

As operators of Melaka’s first integrated nursing home licensed by the Ministry of Health, we’ve experienced firsthand the challenges that have long plagued our industry. Today, we want to share our hopes for how RMK13’s eldercare initiatives could revolutionise care for Malaysian families – and the critical areas where we believe stronger support is still needed.

Understanding Malaysia’s Eldercare Landscape: Important Distinctions

Before diving into our recommendations, it’s crucial to understand Malaysia’s eldercare facility categories:

• Nursing Homes (19 facilities nationwide): Licensed by Ministry of Health (MOH) under Act 586, providing medical-grade care with qualified nurses, medical supervision, and healthcare services
• Elderly Care Centres/Old Folks Homes (393 facilities): Licensed by Ministry of Women, Family and Community Development (KPWKM) under Act 506, focusing on daily living assistance and social care
• Unlicensed facilities (estimated 700-1000): Operating without proper oversight, creating quality and safety concerns

This distinction matters because the care standards, staffing requirements, and regulatory oversight are vastly different between these categories.

The Reality We Face: An Industry at Breaking Point

The numbers tell a sobering story: Malaysia currently has only 19 nursing homes licensed by the Ministry of Health providing medical-grade eldercare, alongside 393 elderly care centres licensed by the Ministry of Women, Family and Community Development. Meanwhile, an estimated 700-1000 facilities operate without proper licensing. With 11.6% of our population aged 60+ and projected to reach 15.3% by 2030, we’re racing against time to build adequate eldercare infrastructure.

At BIGTREE Medicare, we’ve witnessed the daily struggles that families face when seeking quality eldercare. The bureaucratic maze of obtaining proper licensing, the shortage of qualified staff, and the lack of coordinated support from local authorities have made it incredibly challenging to establish and operate world-class eldercare facilities that Malaysian families deserve.

Our Hopes for RMK13: Five Game-Changing Reforms

1. Streamlined Licensing and Property Usage Frameworks

Our Current Challenge: Operating a Ministry of Health-licensed nursing home currently requires navigating multiple authorities – Ministry of Health (Act 586) for nursing homes providing medical care, Ministry of Women, Family and Community Development (Act 506) for elderly care centres, local councils, fire department, and district health offices. Meanwhile, Act 802 (Private Aged Healthcare Facilities and Services Act 2018) remains unimplemented despite being gazetted seven years ago.

Our Hope: We urge the government to finally activate Act 802 and establish the promised central authority under Strategy D2.1 to oversee all eldercare licensing. This would eliminate the current bureaucratic maze where operators spend months shuttling between different agencies, often receiving conflicting requirements.

Additionally, we need clearer property conversion policies that make it economically viable to transform suitable properties into MOH-licensed nursing homes or KPWKM-licensed elderly care centres. Currently, the requirement to convert residential properties to commercial title creates significant barriers and costs that discourage quality operators from entering the market, regardless of whether they’re seeking to provide medical-grade nursing home care or general elderly care centre services.

2. Robust Town Council and Local Authority Support

Our Current Challenge: Local councils often lack understanding of eldercare facility requirements, treating nursing homes the same as commercial businesses without considering the unique community service aspect. This results in inadequate infrastructure support, parking limitations, and zoning restrictions that hamper operations.

Our Hope: We call for dedicated eldercare liaisons within local councils who understand the specialized needs of eldercare facilities. This includes priority consideration for utilities upgrades, accessible parking provisions, and streamlined approval processes for facility modifications required for elderly residents’ safety and comfort.

The National Ageing Blueprint (NAB) mentioned in RMK13 should include mandatory training for local authority personnel on eldercare facility requirements and community integration strategies.

3. Strategic Recognition of Foreign-Trained Nurses While Building Local Caregiver Capacity

Our Current Challenge: Malaysia faces an acute nursing shortage projected to reach 60% by 2030, according to Health Minister Datuk Seri Dr Dzulkefly Ahmad. Meanwhile, we’re experiencing massive brain drain as Malaysian nurses migrate to Singapore, Saudi Arabia, and other countries that welcome them with attractive packages and career advancement opportunities.

Our Hope: We strongly advocate for reciprocal recognition of foreign-trained and certified nurses from neighboring countries. If Singapore and Saudi Arabia welcome our qualified Malaysian nurses with open arms, why shouldn’t Malaysia extend the same welcome to qualified nurses from our neighboring countries?

We recommend:

• Streamlined recognition process for foreign-trained nurses with proper certifications
• Skills assessment programs that focus on competency rather than bureaucratic barriers
• Reciprocal agreements with ASEAN countries for nursing qualification recognition
• Competitive compensation packages to retain both local and foreign nursing talent

However, for caregivers, we believe in Malaysian solutions first. Rather than relying on foreign workers to fill caregiver gaps, we should:**

• Invest heavily in local caregiver training programs with proper certification pathways
• Create attractive career progression that makes caregiving a respected profession
• Provide ongoing professional development for Malaysian caregivers
• Only consider foreign caregivers after we have truly exhausted our own local resources and training capacity

4. Comprehensive Local Caregiver Training and Certification Programs

Our Current Challenge: Malaysia lacks standardised caregiver training programs specifically designed for eldercare. Most training focuses on general healthcare rather than the specialized skills needed for elderly care, including dementia care, mobility assistance, and end-of-life support.

Our Hope: We advocate for substantial government investment in local caregiver development as our primary workforce solution. We need government-funded eldercare training institutes similar to CIDB for construction or MIDA for manufacturing. These institutes should offer:

• Certified Malaysian Eldercare Assistant programs (6-month intensive training)
• Specialized dementia care certifications for local trainees
• Traditional medicine integration training (crucial for Malaysian eldercare context)
• Professional career pathways that make eldercare an attractive long-term profession for Malaysians
• Competitive salary structures that retain trained local caregivers

Malaysia First Approach: We believe in developing our own human capital before looking elsewhere. The RM40 billion health allocation should prioritize training programs that:

• Transform caregiving into a respected profession with proper recognition and compensation
• Provide clear career advancement from Certified Caregiver to Senior Care Specialist
• Offer continuous education and skills upgrading for Malaysian workers
• Create pride in local eldercare expertise rather than dependence on foreign labor

Foreign caregivers should only be considered after we have genuinely exhausted our capacity to train and retain Malaysian talent in this essential sector.

5. Recognition of Eldercare as Essential Infrastructure

Our Current Challenge: Eldercare facilities are often viewed as private commercial ventures rather than essential community infrastructure. This results in limited government support, higher business registration costs, and exclusion from infrastructure development grants available to other essential services.

Our Hope: We call for eldercare facilities to be classified as essential community infrastructure, similar to hospitals and schools. This would enable:

• Tax incentives for property conversion to eldercare facilities
• Infrastructure grants for facility upgrades and safety improvements
• Utility subsidies to keep care costs affordable for families
• Priority zoning designations in community planning

The Economic Imperative: Building Malaysia’s Eldercare Economy

RMK13’s RM40 billion health allocation represents more than healthcare funding – it’s an investment in Malaysia’s emerging eldercare economy. With proper policy support, Malaysia could become Southeast Asia’s eldercare hub, attracting international residents through programs like MM2H while creating thousands of local employment opportunities.

The integrated care framework spanning all age groups mentioned in RMK13’s Strategy D2.1 aligns perfectly with BIGTREE’s integrated model. We envision a future where eldercare facilities like ours can expand confidently, knowing that regulatory support, workforce availability, and community integration are government priorities.

A Call to Action: Partnership for Progress

We don’t just hope for these changes – we’re committed to being part of the solution. BIGTREE Medicare & Nursing Home stands ready to:

• Serve as a pilot facility for new regulatory frameworks
• Share best practices with emerging eldercare operators
• Participate in training program development based on our operational experience
• Collaborate with government agencies to refine eldercare policies
• Support community education about professional eldercare standards

Looking Forward: Malaysia’s Eldercare Renaissance

RMK13 represents Malaysia’s best opportunity to transform eldercare from a fragmented, under-supported industry into a coordinated, professional sector that serves our aging population with dignity and excellence.

With the National Ageing Blueprint providing strategic direction and the central LTC authority offering coordinated oversight, Malaysia can leapfrog decades of eldercare development challenges that other nations have faced.

The question isn’t whether Malaysia will become an aging nation – we already are, and we’re heading toward being a super-aged society by 2057. The question is whether we’ll be prepared with the infrastructure, workforce, and policies needed to serve our elderly with the respect and professional care they deserve.

Join the Conversation

As we move toward RMK13 implementation, we invite Malaysian families, healthcare professionals, and policymakers to engage with us about the future of eldercare. The decisions made today will determine whether your parents and grandparents – and eventually, all of us – age with dignity in a system designed for excellence.

Have questions about professional eldercare standards or Malaysia’s regulatory landscape? We’re here to provide insights based on our experience as Malaysia’s pioneering integrated nursing home.

BIGTREE Medicare & Nursing Home – Malaysia’s trusted partner in comprehensive eldercare and medical services, where professional healthcare meets family-centered compassion.

Ready to learn more about Malaysia’s eldercare standards? Schedule a personalized consultation to discuss your family’s healthcare needs and discover how professional eldercare can enhance quality of life for your loved ones.

📞 Contact us: +6012 685 5103
🌐 Visit: www.bigtree.care
📍 Location: 1, Jalan Pinggiran Kota Laksamana, Pusat Perniagaan Kota Laksamana Jaya, 75200 Melaka