Page 51 - ar2012

Annual Report FY2012 ParkwayLife REIT
4Asia Pacifc Healthcare Outlook 2012- 2015: Frost & Sullivan
5 Issues Monitor: Sharing knowledge on topical issues in the healthcare sector. KPMG
6 Independent Report on the Healthcare Industry in the Asia Pacifc Region: Frost & Sullivan. Religare Health Trust IPO Prospectus
7Report: World faces challenge as technologies lengthen life expectancies, biologist says. Stanford University
8 World Population Prospects: The 2010 Revision (population database). United Nations, Department of Economic and Social Affairs.
9 Statistical Yearbook for Asia and the Pacifc 2012. United Nations, Economic and Social Commission for Asia and the Pacifc.
availability of skilled medical professionals, outside
their home markets.
Supported by the rise in standards of medical
treatment in Asia Pacifc, as attested by the increase
in number of Joint Commission International-
accredited hospitals in Asia from 15 in 2005 to 115
in 20114, medical tourism has become a burgeoning
industry in the region. It is estimated that in 2012,
Asia attracted 5.6 million medical tourists, bringing in
revenues of nearly US$9.1 billion5. Spurred by intra-
Asia Pacifc and inter-region demands, the medical
tourism industry is expected to grow by 15% to 20%
annually between 2012 and 20156.
Ageing Populations And Longer
Life Expectancies
With continual economic and technological
development, countries in the Asia Pacifc region
are faced with longer life expectancies and ageing
populations.
Increasing life expectancies have a positive correlation
with the standard of living and healthcare in the
region. With the growing provision and availability of
basic and advanced healthcare, populations in Asia
Pacifc are expected to live longer. The average life
expectancy (at birth) in the region has risen from 61.7
years in 1970 to 73.3 years in 20102.
Advances in technology have allowed for higher
standards of medical care, which is attributable to
new and better treatment methods and procedures.
Technology improvements and medical innovations
have also helped to make certain medical procedures
or medicines accessible to more people, in turn
contributing to longer life expectancies7.
As a result of longer life spans and the trend of
families having fewer children due to various reasons
including higher cost of living, especially in more
developed nations, Asia Pacifc is faced with the issue
of an ageing population and workforce. By 2050, it
is expected that 25% or 1.3 billion of the Asia Pacifc
population will be above 65 years of age8. This issue is
more pronounced in the more developed economies,
with countries such as Japan and Hong Kong having
23.4% and 13.0% of their populations respectively
being over 65 years old in 2011 9.
Governments in the Asia Pacifc region are keen to
do more to address their ageing population issues.
These measures range from the provision of various
healthcare and insurance schemes to supporting the
set up of more elderly care facilities and advanced
healthcare facilities as well as encouraging and
facilitating private sector participation.
In view of the myriad factors at play, the demand for
quality healthcare services in the region is expected
to continue rising in the long term. PLife REIT looks to
continue meeting these growing needs with a portfolio
that provides a spectrum of private healthcare
services, and to explore further opportunities within
the region to grow its portfolio and deliver greater
value to its Unitholders.
74
72
70
68
66
64
62
60
1970 1995 1975 2000 1980 2005 1985 2010 1990
Life Expectancy at Birth for Asia Pacifc
Source: World Bank (2012)
49