As Singapore transitions into a “super-aged” society, businesses are gearing up to cater to this growing demographic that has its unique needs and also the money to spend on them.
There are many pieces on the board. A key one is the role of the Government in enabling the care of the elderly and encouraging the private sector to play its part. It must also ensure that the seniors keep interacting with younger Singaporeans as different generations have much to offer each other. This forms an important part of the bigger picture, bringing Singaporeans of all ages closer together. There are, of course, new opportunities for businesses.
To get some idea of the scale at which this could be a game changer, look at the way businesses have catered to children and imagine if they started doing the same for the elderly. This means creating goods and services aimed specifically at the demographic.
Innovations targeting seniors have already hit the market. Take elderly nutrition. There are now pureed mooncakes for individuals with swallowing problems. It won’t be long before F&B establishments start to offer more elderly-friendly food choices and menus, the way they have kids menus today.
Likewise, the elderly will need people to care for them. This would mean training specialised caretakers, not general ones.
And as they seek to stay in shape, the elderly might need gym instructors trained to work with older people, not general fitness trainers.
Businesses know that Singapore’s senior citizens have relatively high spending power on account of our Central Provident Fund system. Singapore is also densely populated and urbanised, making it easier for businesses to reach consumers.
This is what makes the silver economy – broadly covering all economic activities of seniors – so lucrative. Business consultancy Ageing Asia had projected that Singapore’s silver economy would be worth $97.8 billion by 2025.
Bonding across generations
It would be wrong to assume that seniors can contribute to the economy only by spending. They can add to the supply as well as the demand. As a bonus to society, they can do this best by partnering with the young.
Take the example of skills that are slipping away today, such as tailoring, which were common in older generations. The current wisdom is that these skills are in declining industries and hence the old should upskill to fit today’s world.
What if we could keep these skills relevant through a synergy between the young and the old? For instance, the two groups could work together on modernising traditional clothing. With Singapore’s multiracial environment, the country could create products that are very “Uniquely Singapore”. This could become a comparative advantage for Singapore in an age of cookie-cutter goods and services.
Even without the economic bonanza, interactions between the old and the young have merits of their own and the scope for these is growing as the society ages.
More mixed-use developments are popping up, such as the St Luke’s ElderCare Active Ageing Centre, which is located next to Northshore Plaza. There are also intergenerational residential spaces such as the 3Gen flats, Kampung Admiralty and Commune @ Henderson Co-Living Space.
This would mean that, as Singapore’s urban landscape changes, the young and the old will get more opportunities to rub shoulders with each other. This will help the old and the young understand and appreciate each other better, and help the young adapt to an ageing society which they will live in.
The earlier such interactions start, the better. Today, the St Joseph’s Home and St John’s-St Margaret’s Village place nursing homes and childcare centres or pre-schools close to each other and have programmes to get the young and the aged to interact. We anticipate more of these communities.
These can only be good for Singapore. Multiple studies have shown that intergenerational programmes and spaces improve the health and well-being of the young as well as the aged, reduce social isolation and create cost efficiencies. These interactions can also create a more bonded society.
The role of the state
The Government will have to play a key role in keeping the elderly engaged and cared for, helping enterprises tap the business opportunity this affords and nudging the private sector to play its part.
To start with, the educational curriculum may need to change and new educational qualifications created to meet the changing demands of an ageing population. Singapore needs such courses to build a relevant human capital pool.
For example, tertiary and lifelong learning institutions can develop more programmes that focus on gerontology.
These courses should not centre only on medical knowledge but take in the psychological, social and cultural aspects. Such courses can be incorporated into the current schemes like the Skills Development Fund.
Meawhile, EnterpriseSG should continue to ramp up support for products that address the needs of the elderly.
Transitioning to a new landscape can be challenging and the state cannot shoulder the burden on its own, as that would strain its resources. On the other hand, markets require the Government to provide directions and necessary platforms. As a result, we can expect more public-private partnerships.
With more mixed-use developments, the Government can share information about neighbourhoods with businesses, such as demographic trends, so that firms know what goods and services to provide.
Instead of a passive role, the Government can take an active role in providing directions and resources for businesses to thrive in an ageing society.
Singapore’s economy need not go the way of Japan’s, which stagnated as it aged. With proper planning, new markets and jobs are likely to emerge faster than old markets and jobs that fade.
The silver economy is here to stay. If Singapore plays its cards right, this means that businesses can thrive, and society can bond. The numbers are not just large in terms of their ages, but also in the opportunities they provide.
- Euston Quah is the Albert Winsemius Chair Professor of Economics and director of the Economic Growth Centre at the Nanyang Technological University, Singapore. He is also the president of the Economic Society of Singapore. Eugene Or is a research scholar at the same university.
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