This report examines the critical role of the capital market in addressing the complex challenges presented by an ageing population, while also leveraging the economic opportunities arising from this demographic shift. It focuses on two key areas associated with the structural trend of the ageing demographic: the challenge of the retirement crisis and the opportunity presented by the growing Silver Economy.

The demographic transition brings profound implications for both individuals and the nation. A looming retirement crisis, evidenced by insufficient savings and shifting social structures — risks escalating individual-level challenges into broader macroeconomic threats such as fiscal constraints and slower economic growth.

This report also reframes ageing not merely as a burden but as a catalyst for economic and social advancement. Central to this narrative is the emergence of the Silver Economy, a rapidly expanding market driven by the evolving needs and aspirations of older adults. This economy offers significant growth potential across sectors such as healthcare, financial services, care facilities and services, technology, lifelong learning, and many more.

To fully harness these opportunities, Malaysia must strategically leverage its first demographic dividend — a temporary window defined by a larger working-age population. However, this window is set to close by 2027. Securing a second demographic dividend will require strategic investments and policies across the labour market, economic development, human capital and wealth accumulation, all of which are vital for long-term socio-economic growth.

Section 1: Addressing Retirement Needs

As retirement income security becomes a major concern, this report explores the evolving role of the capital market in delivering effective solutions for the people. A key theme is the need for an individual-centric approach to retirement — one that recognises the influence of human behaviour, behavioural biases, income disparities, as well as the shifting nature of work and multi-stage life patterns. The report introduces an income-elevated model, which outlines how the capital market can strengthen both the foundational layer of retirement security and enhance overall retirement preparedness for greater financial resilience.

Furthermore, the report explores how technology can serve as a key enabler of retirement security and highlights the vital role of policymakers in creating a supportive environment — one that places individuals at the centre of long-term financial wellbeing.

Section 2: Spurring the Silver Economy

Beyond addressing retirement security, this report highlights how the capital market can serve as a catalyst for growth within the Silver Economy by driving long-term value creation. Through its unique position, the capital market can facilitate access to capital for age-focused enterprises, channel investments into socially vital sectors that support the wellbeing of older adults, and promote innovation across aged care products and services, technology, and financial products. To accelerate industry growth, the capital market can bridge financing gaps through a funding escalator approach, supporting businesses at every stage of development — from early-stage innovation to expansion and scaling.

Moreover, as Malaysia’s workforce evolves, with more older individuals remaining economically active, the report advocates for the adoption of a multi-generational workforce model. Capital market players, including intermediaries, institutional investors, and public-listed companies, are well-positioned to champion workforce inclusivity, aligning talent strategies with the demands of a future shaped by longevity.

Click below to access the full report and explore the analysis, key insights, and strategic recommendations.