25 BUSINESS OVERVIEW Integrated Annual Report 2025 OPERATING ENVIRONMENT DEMOGRAPHIC SHIFTS AND THE SILVER ECONOMY Malaysia is undergoing a significant demographic transition as the population ages, with individuals aged 60 and above accounting for approximately 10% of the total population since 2016, at 9.6% to 11.6% in 2024, translating into a Compound Annual Growth Rate (“CAGR”) of approximately 2.4%. According to the DOSM, this demographic shift is expected to accelerate further, with Malaysia projected to become an aged nation by 2048, supported by rising life expectancy and improved healthcare outcomes. At the same time, Malaysia faces a growing prevalence of noncommunicable diseases such as diabetes, cardiovascular conditions and cancer, which necessitate long-term medical management, specialised treatment, and sustained demand for healthcare infrastructure. Malaysia records one of the highest diabetes prevalence rates in Southeast Asia, with an estimated one in five adults affected. These demographic and epidemiological trends are expected to drive sustained demand for healthcare services, including inpatient treatment, outpatient specialist care, diagnostics, rehabilitation and chronic disease management. The growing “silver economy” further reinforces demand for healthcare infrastructure, as ageing populations typically require more frequent medical interventions, higher hospital admission rates and longer treatment durations. For healthcare real estate, these trends support long-term utilisation visibility and reinforce the relevance of purposebuilt healthcare facilities designed to accommodate complex clinical requirements and advanced medical technologies, supported by demographic-driven demand. MALAYSIA RESIDENT POPULATION BY AGE DISTRIBUTION (’000) 0% 10% 20% 30% 40% 70% 90% 100% 50% 60% 80% Source: Department of Statistics Malaysia (DOSM), 2025 Total 0-14 15-64 65 and over 2020 24.0% 69.3% 6.8% 2021 23.6% 69.4% 7.0% 2022 23.2% 69.6% 7.2% 2023 22.7% 69.9% 7.4% 2024 22.2% 70.2% 7.7% 2025p 21.7% 70.3% 8.0% 32.4 mil 32.6 mil 32.7 mil 33.4 mil 34.1 mil 34.2 mil
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