Deloitte report: Asia will be home to 60% of world's over 65s by 2030, creating growth opportunities for business

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HONG KONG, CHINA -- (Marketwired) -- 09/17/17 --


Demography -- the fundamental driver of all economies -- is shifting the balance of power in Asia, according to Deloitte's Voice of Asia report:

Asia's over 65s are the largest and fastest growing market in the world, providing a target-rich environment of business opportunities, according to Deloitte, who today released the third edition of their Voice of Asia series. Those in Asia aged over 65 will grow from 365 million in 2017 to more than 520 million in 2027. While this creates emerging challenges for ageing nations, ageing populations will also generate a growth cluster of new business opportunities.

"Ageing populations may well be challenging to some nations, but they will also present some incredible business opportunities within those same nations. Our analysis shows that ageing will produce some very large winners at the industry level, particularly in Asia," said Chris Richardson, Deloitte Australia Economist.

Ageing to create a growth cluster of industry winners
Three big accelerators drive the industry opportunities in an ageing Asia, with each building on the other:

Sitao Xu, chief economist, Deloitte China, notes that, "China and Hong Kong can learn from the experience in Japan, where rapid ageing in the population has changed the needs of people and the way businesses satisfy them. In Hong Kong, life expectancy is at 84 years, which is higher than many developed countries, yet health care expenditure is still quite low, accounting for just 5.7 percent of GDP. There will be increasing demand in the health care industry, and as Government spending continues to be tightened, much of this demand will be addressed by the private sector. Additional growth will be seen in consumer goods for the elderly, age-appropriate housing and social infrastructure, as well as asset management and insurance."

India's rise as an economic superpower
Some nations will be well positioned to take greater advantage of these demographic opportunities. In particular, India is set to rise as an economic superpower, driven in part by demographic changes. Following the rise of Japan and then China in decades past, India will drive the third great wave of Asia's growth. Its potential workforce is set to rise from 885 million people today to 1.08 billion people in the next twenty years, and it will remain above a billion people for half a century.

Anis Chakravarty, Deloitte India Economist explained that, "India will account for more than half of the increase in Asia's workforce in the coming decade, but this isn't just a story of more workers: these new workers will be much better trained and educated than the existing Indian workforce, and there will be rising economic potential coming alongside that, thanks to an increased share of women in the workforce, as well as an increased ability and interest in working for longer. The consequences for businesses are huge."

While the coming 'Indian summer' will last decades and have the largest impact on the world, India isn't the only Asian economy set to surge. Indonesia and the Philippines have relatively young populations, meaning they'll experience similar growth.

How countries can minimise the impact of ageing
Ageing isn't a new issue: Japan is already dealing with a rapidly ageing population and its implications aren't fully determined. Even India's projected growth isn't guaranteed. It needs the right institutional set-up to promote and sustain its growth, otherwise its rising population could cause increasing unemployment and consequent social unrest.

Sitao Xu, Deloitte China Economist, notes that, "As China's population is ten times that of Japan, and given that China doesn't yet have a sound social security system, there's a chance that ageing could lead to a lower saving rate and a higher inflation rate, declining growth, a worsening government budget deficit, and pressure on its property and financial markets. To mitigate the negative impacts of demographic trends, China needs to implement policy remedies to raise productivity and performance, in addition to financial liberalization. For example, increasing the age of retirement and addressing the challenges faced by the largely disadvantaged migrant worker population who have flocked to Chinese cities."

A number of areas can be addressed to fuel Asia's economic future:

An ageing Asia will rewrite the playbook of businesses in Asia and around the globe -- generating new opportunities by geography, such as India, Indonesia and the Philippines, and by industry, not just in health care, but also more widely.

More analysis and details on Voice of Asia can be found here.

About Deloitte Global
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ("DTTL"), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as "Deloitte Global") does not provide services to clients. Please see www.deloitte.com/about to learn more about our global network of member firms.

Deloitte provides audit & assurance, consulting, financial advisory, risk advisory, tax and related services to public and private clients spanning multiple industries. Deloitte serves four out of five Fortune Global 500® companies through a globally connected network of member firms in more than 150 countries and territories bringing world-class capabilities, insights, and high-quality service to address clients' most complex business challenges. To learn more about how Deloitte's approximately 245,000 professionals make an impact that matters, please connect with us on Facebook, LinkedIn, or Twitter.

About Deloitte China
The Deloitte brand first came to China in 1917 when a Deloitte office was opened in Shanghai. Now the Deloitte China network of firms, backed by the global Deloitte network, deliver a full range of audit & assurance, consulting, financial advisory, risk advisory and tax services to local, multinational and growth enterprise clients in China. We have considerable experience in China and have been a significant contributor to the development of China's accounting standards, taxation system and local professional accountants. To learn more about how Deloitte makes an impact that matters in the China marketplace, please connect with our Deloitte China social media platforms via www2.deloitte.com/cn/en/social-media.

This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively the "Deloitte Network") is by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this communication.

© 2017. For information, contact Deloitte China.

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Marketwire: 03:48 GMT Monday 18th September 2017

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