INTRODUCTION

Penang has recently become a popular destination for Japanese longstay retirees. Although more Japanese tourists are reported to visit Thailand (1,146,633 in 2008) than Malaysia (433,462), the latter country has constantly been voted by Japanese retirees as “the most desirable destination” overseas for long-stay since 2007. In Malaysia, Penang stands out as the primary destination city for the Japanese. Furthermore, thanks to Penang's strong reputation and well-developed facilities, it serves as a gateway to Southeast Asia for many Japanese retirees in their exploration of the region. Many Japanese come to Penang first, and then move on to various places in order to choose an ideal place for their retirement life.

Why do an increasing number of Japanese elderly choose to live overseas after retirement? What kind of retirees come to Southeast Asia, and, why Penang? This chapter aims to provide a broad overview about this emerging Japanese migration trend and its implications for the new development dynamics of Penang. We will first provide background information about the “super ageing” process in Japan and explain why Japanese retirees are heading to Southeast Asian countries. Secondly, we will trace the historical evolution of Japanese retirement migration, a process which is related to the development of tourism, government policies as well as business interests. Thirdly, we will describe how Malaysia and Penang emerged as important destinations for the long-stay retirees. Finally, we call attention to the phenomenon of outflows of Japanese from Penang, and attribute this to gaps between Japanese retirees' life strategies on the one hand, and the expectations of the Malaysia government and “retirement industry” developers on the other. By “retirement industry” we refer to a wide spectrum of businesses that target retirees as customers, including care homes, elderly-friendly real estate properties, travel agencies and the like.

PUSH FACTORS IN JAPAN

Japan has become a “super ageing” society where 23.1 per cent of the total population in 2010 was sixty-five years old and above (Ministry of Home Affairs, cited in Yomiuri Newspaper, 20 September 2010).