At first glance, I thought the latest elderly care facility, the Senior Complex Project initiated by the Treasury Department and Ramathibodi Hospital, would be an ideal facility for Thailand's ageing society. But upon looking further into the project's details, I'm not so sure.
Branded as the country's first turnkey service for the elderly, the project, located on a 20-rai plot of land in Samut Prakan, was well received by prospective customers, with higher-than-expected bookings.
The Treasury Department believes the 921 units will be sold out at the end of the month. If so, it plans to launch the project's second phrase. The construction of the first phase is to start in the middle of next year, and it should be open for residents by the end of 2022.
The project, designed for Thais aged over 60 who are in good health, and can be accompanied by a foreign partner if they wish, will maximise the assets owned by the department, known to have some 12.5 million rai.
It will be in line with the government's response to Thailand's ageing society and will have facilities and medical services from a nearby hospital. Such services make the project attractive, so much so that the department has thought of a lucky draw should demand exceed the number of available rooms.
I can understand the possible high demand. Who in that age range wouldn't want a perfect combination of location, service and environment? But the price, at 1.83 million baht plus a monthly 30,000 baht fee, is not so friendly.
At this price, only middle-class retirees could afford it. I cannot help but think this elderly care facility, like many of the projects or policies initiated by the government, seems to target only the middle class.
Many people I know are attracted to the project as it would make their retirement become more pleasurable. But, at those prices, it can cater to only a small portion of Thailand's ageing population. The remainder of the elderly population, which accounts for a significant amount of Thailand's overall population -- what will they do?
According to the Bank of Thailand, as of May this year, there were more than 102 million bank accounts, totalling 14.5 trillion baht. Of that total, 1,514 accounts had more than 500 million baht. Contrasting the biggest accounts, over 93 million accounts have less than 100,000 baht in them.
In related research by the Puey Ungphakorn Institute for Economic Research, released last December, it found half of the population, or about 37.9 million, have accounts with commercial banks. But the study interestingly found that 4.7 million people had an average of just 34 baht in their accounts.
I'm sure there are quite a few people who don't even have a savings account, let alone a house or a property. What will the majority of the country do when they retire in the next decade or two?
Those living in the provinces or small towns may be lucky as they live in areas where extended families are still common and community members and health volunteers are active.
But socioeconomic change has forced younger singles or couples to leave the traditional extended family behind. As urbanisation expands, fewer and fewer elderly people will be surrounded by family members or long-time neighbours.
But I can imagine that the urban poor will have to go back to retire in their home provinces where they no longer have a network, and their children will not be with them as they will still be busy working. People in this group certainly can't afford a luxury elderly home.
Bangkhae Home Foundation, the country's first home for the elderly, isn't an option, as it's always overbooked and apparently, due to advanced health technology, residents tend to stay longer. Thailand will become a fully-fledged aged society next year, when the number of senior citizens will rise to 20% of the population, or about 13 million people. The number is expected to reach 20 million people by 2040.
Looking at the growth of Thailand's ageing population contrasted with the shrinking number of savings accounts, I only hope related agencies, namely the Ministry of Social Development and Human Security, will speed things up and reach out to the Treasury Department to build shelters to accommodate retirees from low-income backgrounds.