Projected household savings in Asia Pacific to increase by 58% in 5 years
SINGAPORE, 15 APRIL – According to the latest findings from the 2nd Asia Pacific Silver Economy Business Opportunities Report 2013, a bi-annual publication, produced by Ageing Asia Pte Ltd, the Asia Pacific’s silver economy is expected to hit US$3 trillion by the year 2017. To establish the market opportunity of Asia Pacific’s ageing baby boomer population between 2012 and 2017, the Asia Pacific Silver Economy Business Opportunities Report used projected household savings, compound annual growth rate (CAGR), GDP and sample population data of those aged over 60 to establish the market size for the region’s silver economy. The analysis showed that the region’s projected household savings is likely to increase by 58%.
Launching at the 4th Ageing Asia Investment Forum 2013 on the 16 April 2013, this year’s edition features projected Asia Pacific silver economic opportunity, top 12 trends in the business of ageing, market commentary and insights from 150 industry leaders on the future of ageing in Asia Pacific, and 15 global eldercare business models.
15 regional countries have been selected to be part of the analysis on the region’s silver economy business opportunities – Australia, China, Hong Kong SAR, India, Indonesia, Japan, Republic of Korea, Malaysia, Myanmar, New Zealand, Philippines, Singapore, Taiwan, Thailand and Vietnam.
Aimed to provide market observations of Asia Pacific's lucrative silver economy driven by the spending power of 1.2 billion ageing baby boomers by 2050, the report also sees the launch of the first Ageing Asia Silver Economy Index - a ranking of countries in Asia Pacific by market potential of ageing baby boomers. Using ’Per Capita Household Savings for aged over 60’, ’Growth rate of Household Savings’, ’Percentage of ageing population’ and ’Life Expectancy at birth’ as contributing factors, the Ageing Asia Silver Economy Index saw Singapore in the third position with Hong Kong SAR emerging in the top, followed by Australia in the second position.
Ageing Asia Silver Economy Index (Top 5 Countries) | ||||||
Factors #4 | Weightage | Rank Order | ||||
Japan | Republic of Korea | Australia | Hong Kong SAR | Singapore | ||
Per Capita Household Savings | 35% | 3 | 6 | 1 | 4 | 2 |
Growth rate of Household Savings | 35% | 14 | 9 | 13 | 5 | 11 |
% Of Ageing Population | 15% | 1 | 5 | 3 | 2 | 6 |
Life Expectancy | 15% | 1 | 4 | 3 | 2 | 4 |
Weighted Average Index |
| 6.3 | 6.6 | 5.8 | 3.8 | 6.1 |
Ranking |
| 4 | 5 | 2 | 1 | 3 |
Singapore has the highest GDP per capita PPP in Asia Pacific – US$60,900, and the third highest in the world. By 2050, 38% of the population will be aged over 60. With a weightage of 6.1, just 0.5 away from Hong Kong SAR, Singapore is a potential market to explore for ageing business opportunities and turning social challenges to opportunities. The Singapore Government has also announced recently that a budget of US$400 million will be used to build 10 new nursing homes, 39 new Senior Care Centres and 56 new Senior Activity Centres by 2016 to support the needs of the local population1.
Ms Janice Chia, Managing Director, Ageing Asia Pte Ltd, Singapore shared, “ageing in Asia Pacific will impact every sector of our economy. We need to start changing our mindsets and be more innovative about products and services that will attract spending power of ageing baby boomers, to enable them to age independently, healthily and with dignity. Older adults in Asia-Pacific represent a US$3 Trillion market opportunity for healthcare, eldercare, financial products, education, wellness, real estate, recreation, and more. For a start, we should stop using the term ‘silver tsunami’ and consider using ‘silver economic opportunity’”
The Asia Pacific Eldercare Innovation Survey interviewed 150 ageing market leaders and together with analysis from the Asia Pacific Silver Economy Index and market observations of 15 Asia Pacific countries, indicated that mass-market eldercare business models are viewed as having higher viability in Asia Pacific as compared to high-end eldercare models. Over 76.4% of the respondents interviewed felt that government and private sector collaborations will lead the way in delivering innovative and affordable eldercare solutions for our ageing population.
During the Ageing Asia Investment Forum that will take place in Singapore from 15 – 19 April at the Pan Pacific, Singapore, over 40 international expert speakers and over 300 delegates from 17 countries will also be sharing their insights on areas such as, ‘Financing Asia Pacific’s healthcare and eldercare projects’, Changing the way we approach ageing in Asia-Pacific, ‘The future role and sustainability of nursing homes’.
As part of the organisers’ charity drive, 10% of sales proceeds of the 2nd Asia Pacific Silver Economy Business Opportunities Report 2013 will go towards the beneficiaries for the Ageing Asia Art for Seniors Project 2013. This charity project spearheaded by Ageing Asia Pte Ltd aims to improve quality of life and create happier living environments for seniors in nursing homes in Singapore. This charity project was launched at Ageing Asia Investment Forum 2012. The Organisers were inspired by Dutch ageing-in-place specialist, Dr Hans Becker from the Humanitas Foundation and his outstanding use of art to create conversation pieces in elderly complexes operated by his organisation.
Jointly participated by The People’s Association who is the Ageing Asia Investment Forum 2013’s Active Ageing Partner and the MacPherson Active Ageing Committee (AAC), the inaugural project took place in January 2013, where 30 youths and seniors volunteers created art murals at the Geylang East Home for the Aged. Ageing Asia will be making this an annual event.
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1 Gan Kim Yong, Minister (12 March 2013) COS Speech By Minister for Health Gan Kim Yong – Better Health for All ( Part 1 of 2), [Para 25] Ministry of Health URL: http://www.moh.gov.sg/content/moh_web/home/pressRoom/speeches_d/2013/COS... HealthforAllPart1of2.html Last accessed: 10 March 2013
About the International Ageing Week organised by Ageing Asia Pte Ltd
Attracting 40 International Speakers, 22 Global Eldercare Operators, Entrepreneurs & Investors from over 17 countries, the International Ageing Week taking place in Singapore from 15-19 April, Pan Pacific Hotel will welcome 300 delegates participating in:
• 4th Ageing Asia Investment Forum (16-17 April)
• Launch of 1st Ageing Asia Gov & NGO Symposium (15 April)
• 1st APAC Eldercare Innovation Awards Ceremony & Dinner (16 April)
• Specialist workshops on Advanced Elder Care in Japan & on Housing Innovation (18 April)
• Health and Eldercare Facility Site Visits to Singapore and Malaysia (15 & 19 April respectively)
• Launch of 2nd APAC Silver Economy Business Opportunities Report (Bi-Annual)
About Ageing Asia Pte Ltd
The 4th Ageing Asia Investment Forum (AAIF) 2013 is produced and managed by Ageing Asia Pte Ltd, a subsidiary of Xperiential Events Pte Ltd. Xperiential Events creates iconic, business-to-business events that focus on transforming social challenges into business opportunities to enable businesses in Asia.
Ageing Asia Pte Ltd is an Ageing Market Consultancy that specialises in facilitating collaborations and strategic partnerships between CEO-level business, government and community leaders to access Asia’s US$3 trillion silver industry through a combination of in-depth industry research and networking with key decision makers in the business of ageing. Its flagship event, the Ageing Asia Investment Forum, is an annual showcase of the regions’ top business opportunities to tap on the ageing market. In 2012, the company launched the Ageing Asia Alliance – Asia’s first industry network on the business of ageing. Today, the Alliance connects over 950 members to business opportunities in Asia’s silver economy. The mission of the Ageing Asia Investment Forum series is to increase private sector investments in products and services to enhance the quality of life, health and functional capability of seniors in Asia.
Singaporean entrepreneur Janice Chia founded Ageing Asia Pte Ltd with the mission to improve the way future generations of elderly age in Asia, by engaging the business community to create better products and services that will enable healthy, independent ageing and dignified ageing. Influenced by the changing needs of her elderly relatives as they grew older and the higher expectations in quality of life of the baby boomer generation, she firmly believes that the social challenges of ageing can be transformed into an economic opportunity for Asia.
For more information, please visit: www.ageingasiainvest.com
For enquiries or registration to attend the 4th Ageing Asia Investment Forum, please contact:
Joanne Tan
Marketing Manager
Ageing Asia Pte Ltd
T: (65) 6441 0474
M: (65) 9386 3652
E: joannetan@ageingasiainvest.com