JAPAN’S GOLDEN OPPORTUNITY
Japan’s population is now ageing faster than any
other countries and the people over the age of 65
is making up a quarter of the total population for
the first time
[3]
. With the proportion of people aged
65 or over forecasted to reach nearly 40 percent of
the population in 2060, the government has been
finding ways to address the challenges of providing
healthcare support for the growing silver generation.
Shinzo Abe’s election victory in December 2014
reinforces the mandate for him to proceed with
his vision of the nation’s economic reform. As
part of his reform plan, it aims to revitalise and
spur growth in the nation's healthcare industry by
further deregulating the industry in attracting the
private sector players. One of the initiatives includes
sanctioning the establishment of dedicated REITs
to encourage the private sector to invest in the
healthcare industry. Such initiative has resulted in
Daiwa Real Estate Asset Management Co. Ltd.’s
listing of Japan’s first healthcare facility-focused
REIT (Nippon Healthcare Investment Corporation) on
the Tokyo Stock Exchange in early November 2014.
The growing investment exuberance in this sector
bodes well for PLife REIT. Not only will it encourage
greater transparency, it will also boost investors’
confidence. This will eventually translate into a
more liquid and robust market that PLife REIT could
leverage on as it optimises its portfolio.
PIONEERING A BETTER SINGAPORE
The prognosis for the healthcare industry inSingapore
is looking rosy. The launch of the Pioneer Generation
Package, and MediShield Life, a groundbreaking
universal health insurance programme that provides
lifelong coverage to all Singaporeans and permanent
residents, and Singapore’s growing medical tourism
sector will continue to drive the healthcare industry.
Singapore had set aside S$8 billion in the budget
for its unprecedented Pioneer Generation Package.
This initiative that is specially catered for the
pioneer generation will provide senior citizens with
several forms of healthcare subsidies. Just as the
MediShield Life programme helps assuage medical
worries, the Pioneer Generation Package aims to
give about 450,000 older Singaporeans greater
assurance so that they could better enjoy their silver
years. Such initiatives illustrate the government’s
acknowledgment about the rising healthcare costs
as the government implements more favourable
policies to ease Singaporeans’ general anxiety
about their medical bills.
Medical tourism in Singapore amounted to
approximately S$1 billion in 2013 and is expected to
double by the end of 2020
[4]
. Disparities in the quality
of healthcare in the region mean that Singapore
is the ideal gateway to medical travellers who are
increasingly seeking quality and unique healthcare
services. With the rising demand for high-end
medical services, the number of medical travellers
to Singapore is expected to grow, particularly in a
region of growing affluence.
With the strong government support and booming
medical tourism in the sector, it will further boost the
investors’ interest and confidence of the healthcare
industry in Singapore. Given PLife REIT's strong
presence in Singapore, it will be able to leverage
on its core expertise as it seeks out opportunities
to meet the growing demand.
[3]
Reynolds, I. (2014, April 16). Bloomberg. Retrieved from
Japan's Population Shrinks for Third Year as Aging Increases:
population-shrinks-for-third-year-as-ranks-of-aged-grow.html
[4]
(2014, December 18). Healthcare stocks in Singapore in the
pink of health: Analysts. Retrieved from Channel News Asia:
/
healthcare-stocks-in/1537862.html
17
A N N U A L R E P O R T 2 0 1 4
