how ordinary businesses make money

What a care home keeps from the monthly fee

A weekly pill organiser with plain white lids, a clipboard with a blank chart, a short plain wooden walking stick, a pair of plain black reading glasses and a blank invoice on a soft pink paper board
Someone's parent is the customer. Someone's child pays.

My rough guess is about a tenth of the fee when the home is nearly full, and close to nothing when a few beds sit empty. I couldn't find a Malaysian care home's accounts, so that leans on one listed cousin and some sums of mine.

One bed, one carer

Take the fee first. Studies by ManagedCare, quoted by CodeBlue in 2020, put homes with basic facilities in KL and Selangor at RM1,200 to RM3,500 a month.3 It's an old number, so I'll use a round three thousand ringgit as my made-up home's fee.

Now the wage. The general manager of the Malaysian Association for Social Care Professionals and Homes told The Star in 2024 that carers at welfare and old folks' homes start at RM1,800 to RM2,400 a month.2 So one resident's fee just about buys one new carer, before anything else gets paid.

Who's awake at three in the morning?

One carer doesn't buy much of a day. Someone has to be awake at three in the morning, and my guess is that keeping one post filled around the clock takes about four people, once you allow for shifts and days off. It's the same problem as a condo's guard, except that this guard also does the laundry.

That last part isn't a joke, or not only one. The association's general manager says carers at most centres multitask, across laundry, cooking, cleaning and medication.2

I don't have a number for how many carers a Malaysian home actually runs per resident, and none of the reports I read gives one. A geriatrician raised that as a worry in the same 2020 CodeBlue piece.3 That's awkward, because it's the number the whole fee turns on.

The nearest thing to accounts

The closest I can get is a cousin. Econ Healthcare is listed in Singapore, runs homes in Malaysia too, and publishes its costs as shares of revenue.1

Where Econ Healthcare's revenue went, six months to September 2024

Where Econ Healthcare's revenue went, six months to September 2024A stacked bar that adds up to 100: Staff 56, Leases 13, Supplies 10, Other running costs 8, What's left 13.Staff 56%Leases 13%Supplies10%What'sleft 13%Other runningcosts 8%Where Econ Healthcare's revenue went, six months to September 2024A stacked bar that adds up to 100: Staff 56, Leases 13, Supplies 10, Other running costs 8, What's left 13.Staff 56%Leases 13%Supplies 10%Other running costs 8%What's left 13%
Its reported shares of revenue, group-wide and about 90% Singapore, including an ambulance unit. What's left is my subtraction, before grants, tax and depreciation of its own assets. Not a Malaysian home's books.

Don't lean on it too hard. Malaysia was under a tenth of its revenue, and it gets Singapore's wages and Singapore's grants.1 After tax and those grants, it reports keeping about 11%.1

Still, the shape is what I'd expect. Food and supplies are a small line, the building is a medium one, and people are more than half.

What an empty bed does

Now borrow that share for my made-up home. Say thirty beds at three thousand ringgit, so ninety thousand a month when it's full, and say about thirteen percent is left, which is roughly twelve thousand.

That's four beds. Four empty beds out of thirty and the surplus is gone, because the carers still turn up, and the food saved on an empty bed won't move the sum much. If the true margin is nearer a tenth or a fifth, it's three beds or six.

So occupancy is the whole game, and it moves. Econ says its Malaysian occupancy rose from 84.9% to 92.0% in a year.1 One of its Malaysian homes, with 138 beds, started in December 2022, and Econ called it fully occupied in late 2024.1

It doesn't say how those months went, but I'd guess the early ones were the costly ones. You hire for the home you're going to have, then wait.

Why the fee range is so wide

The ManagedCare line comes with a plain explanation: the price rises as the old person's needs do.3 I read that as mostly a staffing range wearing different wallpaper.

Three monthly fees quoted in Malaysia, in ringgit

Three monthly fees quoted in Malaysia, in ringgitBars side by side: Basic home, low end 1200, Basic home, high end 3500, One assisted-living operator, from 10000.1200Basic home, low end3500Basic home, high end10000One assisted-livingoperator, fromThree monthly fees quoted in Malaysia, in ringgitBars side by side: Basic home, low end 1200, Basic home, high end 3500, One assisted-living operator, from 10000.1200Basic home,low end3500Basic home,high end10000Oneassisted-livingoperator, from
The first two are ManagedCare's range for basic homes in KL and Selangor, via CodeBlue in 2020. The third is one operator's starting price for assisted living, from the New Straits Times in 2024. Different years and different care.

At the top, the chief executive of one assisted-living operator told the New Straits Times that care there starts at RM10,000 a month, all in.5 She also said it's very costly to keep the same team of professionals on around the clock. She's selling that service, so hold it with that in mind, though it fits the sums above.

What stricter licensing would do

Malaysia has a law waiting for this. The Private Aged Healthcare Facilities and Services Act was gazetted in March 2018, and CodeBlue reported in 2023 that its regulations hadn't been approved, so it couldn't yet be fully enforced.4 That was the position in May 2023, and I haven't chased it past that date, so check before you lean on it.

The same report describes what a licence would involve: approval from the Health Ministry, qualified medical staff, infection control.4 Nearly all of that lands on the biggest line in the sketch.

I'd expect fees to rise, or small homes to close, or more of them to stay outside the system. A news report's figure, cited by a geriatrician in 2020, already put more than 1,000 unregistered centres there, and other counts differ.3

People who want tougher licensing are right about why, and I'm with them. I just don't think it comes free. Someone's child would be paying for it, and I'd want that said out loud before the rule arrives.

where I looked

  1. Econ Healthcare (Asia) Limited, results presentation for the six months ended 30 September 2024 links.sgx.com
  2. The Star, Little love for M'sian caregivers, 2024 thestar.com.my
  3. CodeBlue, What Malaysia needs for healthy ageing and care, 2020 codeblue.galencentre.org
  4. CodeBlue, Industry: Senior Citizens Bill may not be suitable for regulating care homes, 2023 codeblue.galencentre.org
  5. New Straits Times, Rising cost of retirement, 2024 nst.com.my