Health is wealth

Sanjay Prabhakaran
Director, South-east Asia
Baxter Healthcare (Asia) Pte Ltd

HEALTH is wealth. So, of the four growth segments - healthcare and wellness, travel and leisure, financial products and services as well as assistive technology - that have been identified, the first is the most important. After all, if you are in poor health, many of your other priorities (such as travel) will probably become less important or even irrelevant.

How can we grow the healthcare and wellness segment? To begin with, we have to raise public awareness of superior treatment or therapy methods that are more affordable or better than conventional methods of treating diseases, especially in chronic care.

For instance, the conventional therapy method for end-stage renal disease is haemodialysis (HD). HD is generally expensive and patients have to put up with dietary and travel restrictions, regular trips to dialysis centres and other inconveniences including compromising their active work routine.

In contrast, peritoneal dialysis (PD) is a much cheaper alternative to HD. Not only that, PD patients are not saddled with such inconveniences and they can even tailor their daily schedules in order to self-dialyse at home, at work or anywhere else.

With the continued advancement in medicine, there  are other examples of better and more innovative treatment methods for critical and chronic care illnesses. We must educate the public on what these are and how they allow patients to lead active, fulfilling and productive lives, thus contributing to Singapore's economic growth.

Besides public education, sustainable new or increased healthcare subsidies - especially for long-term medical conditions such as haemophilia - will also encourage a productive, active citizenry.

And when large numbers of silver-haired consumers are able to lead active lives regardless of the state of their health, the other three growth areas will naturally develop. This is why the health and wellness segment should be our key focus for now - it is the enabler for the rest of our silver industry strategy to succeed.

Exploiting opportunities

Teng Yeow Heng, Michael
Managing Director
TR Formac Pte Ltd

THE silver industry is indeed going to be a huge one as many baby boomers approach retirement. Many of them have the financial resources as well as experience that can be utilised. Singapore needs to position itself to exploit the opportunities in this huge regional market projected to be worth US$616 billion by 2015.

There are basically two market segments in the silver industry. The first caters to the wealthy who can afford to retire and enjoy the fruits of their labour. The service/product offerings in this segment may target wellness, anti-ageing and health businesses as staying healthy and youthful become important to these affluent baby boomers.

There are also opportunities in starting baby boomer retirement villages or resorts to cater to those who want to be connected to those of similar social status and demographics. These resort-style homes will also have full service amenities to pander to these baby boomers' leisure demands.

The second market segment would cater to those who either cannot afford to retire or want to keep working. This segment is often neglected when estimating the potential of the silver industry and it may be an even bigger segment than the first. Singapore entrepreneurs can help these people start new home businesses such as multi-level or Internet marketing, consultancies, and so on. These so-called elderly people would have a wealth of experience that can be put to use with their home businesses. Studies have found that the number of home businesses globally will overtake the small and medium-sized enterprises in the near future.

Conventional businesses may have limited opportunities for ageing boomers. Home businesses, however, offer flexibility and a quick start-up while keeping boomers mentally challenged and providing for them financially.

T V Seshadri
Vice-President & Country Manager
MasterCard International

FOR businesses to truly harness the potential of the  silver segment, labour markets and public policy systems should be elder-friendly. The Singapore government is a front-runner in this aspect, by implementing policies to accommodate ageing workers who are experienced and willing to continue working.  A range of flexible working options - be it working part-time, retraining for new skills, returning to school or even continuing to work full-time - are being provided.

Many companies have also started to adapt the  workplace to older workers. As the implementation of flexible working options continues, it will in one stroke, solve the labour shortage problem of Asia?s ageing population, while putting more purchasing power in the hands of the elderly.

According to research conducted by MasterCard Worldwide, the elderly population in Singapore is on average well-off, with the spending power of retired  empty nesters and retired old singles in Singapore estimated to have been $3.6 billion in 2005.

In the next 10 years, their spending power is projected to grow rapidly at an average of over 12 per cent per year. This group is expected to spend on items such as dining and entertainment, travel and leisure and private healthcare and luxury medicine. Businesses hoping to target this powerful consumer group should look for opportunities in these key areas.

Derek Goh
Executive Chairman/Group CEO
Serial System Ltd

THE silver industry has now taken centrestage as the baby boomers have reached this stage of life. Their purchasing power, aided by the CPF nest-egg, has boosted the silver industry's growth.

The SI committee should focus on three core areas for development - homecare, holistic well-being and holy places.

Let me elaborate. Elder-friendly housing like retirement villages will become increasingly popular among retirees with CPF savings and who enjoy independent living.

Private developers should be offered incentives by the Urban Redevelopment Authority to develop such homes for active elders. Such an option will boost the active lifestyle of the senior citizens.

Wellness centres, catering to the mental and physical well-being of active elders, will enjoy patronage as the seniors will demand such services and can afford to pay for them. Training of physiotherapists and counsellors (supported by the Workforce Development Agency) to serve in the wellness centres should be promoted and accredited to provide quality service in this sector.

Finally, as seniors reach the end of their life journey, the desire to be closer to their spiritual masters will be higher. Thus, pilgrimages to holy places (organised by Natas members) as well as spiritual programmes (like meditation and retreats) will be in demand.

I am confident that Singapore is well-positioned to be the Asian silver hub to serve active Asian seniors from China, Japan, Korea and India who have the means to enjoy an active lifestyle in this century.

Dora Hoan
Group CEO
Best World International Ltd

STUDIES show that between 2000 and 2030,  Singapore will post a 372 per cent increase in its elderly population. That's the fastest rate in the world. It means that it will take Singapore just 27 years to double its 65 and above population, from 7 per cent  (in 2001) to 14 per cent (2028). Similar projections are up for the United States as in that same timeframe, the American population of over-65s will increase by 102 per cent.

These are made up of the baby boomers (those born between 1946 and 1964) who represent a huge demographic with enormous disposable income.

Philip Yeo, chairman of the Silver Industry Committee, has issued a call for Singapore to go for a slice of this phenomenal market. This is also a generation known to be more self-indulgent, and passionate about living healthier and longer. This ageing population therefore presents a huge potential to create new markets for products and services targeted at their continued well-being.

Consequently, we think of healthcare and medical services. These do not just include routine healthcare but research and development for the newest products and services meant to improve the quality of life for the elderly.

Related industries such as pharmaceuticals, nursing homes, or even medical waste disposal offer potential. There are also discussions on the near-term practical application of biotechnologies aimed at battling the burden of ageing.

There is also the aspect of tourism and travel as well as leisure and recreation. Singapore must set its sights on this special market by gathering data on the specific needs of these people who have worked hard all their lives and now deserve to reap the rewards by living, not just longer, but better.

J Anton Ravindran
Group CEO & Co-Founder
Genovate Solutions

WITH the government's recent announcement of the CPF withdrawal age, the silver industry seems set to thrive with various target sectors taking advantage of the situation. With a looming threat of a decreasing working population, which would have encountered a steady drop from 70.9 per cent to a disturbing 57.5 per  cent come 2050, the growing silver population will have to almost fully support themselves physically and financially.

These ageing baby boomers are expected to live longer due to their increasing affluence and better access to healthcare and education. Their consumer expenditure - forecast at US$616 billion by 2015 in most Asian nations - is also a key element in longevity. Hence, the upcoming Silver Industry Convention and Exhibition (SICEX) 2008 - the first of its kind in Asia - is targeted at tapping the bounty of business opportunities in the region's silver market where target sectors include travel and leisure, healthcare and wellness, finance and technology.

Promoting healthy lifestyles and savings schemes aside, disseminate messages to encourage more leisure and recreation - to loosen up and have some fun. A typical Singaporean's problem lies in factoring every minute detail of his financial life - that shouldn't be eliminated but perhaps taken a little less seriously.

Expand the community spirit beyond the taiji quan circle. Go to parks, plan a walkathon for retirees, take the chess playing out of the void decks and into an official competitive field. Royston Tan unexpectedly capitalised on the ageing population and took getai to the big screen. It's all about studying who makes up that cohort.

The elderly of 2015 are the businessmen of today who partake of the local nightlife and entertainment, visit spas every now and again, invest in sophisticated wines, antiques and art. Tapping these sectors in the future should continue to spur their spending.

A repackaging strategy

Lim Soon Hock
Managing Director
Plan-B ICAG Pte Ltd

TWENTY per cent of Singapore's population will be 65 years or older by 2030. This by itself is a compelling reason to develop a silver industry. The recent move by the government to push back the retirement age and to encourage older workers to work longer will fuel the growth of this industry.

We are fortunate that we do not need to start from scratch: We can take advantage of the wide spectrum of products and services that we currently have arising from our position as a haven for food, shopping, entertainment and leisure as well as a centre for healthcare, education, wealth management and efficient transportation.

What we need to do as the first step at the national level is to re-package the myriad offerings to upsell and cater to the special needs of the silver generation. Businesses need to be more elder-friendly. For example, fonts of signages and printed materials need to be readable, and service staff need to be more patient in attending to the needs of the silver generation.

Singapore can evolve as a playground for the silver generation, not just for our own citizens, but for foreigners as well. To achieve this we need to identify niche areas which we can develop and execute well; for example, health farms or spas for an anti-ageing and holistic lifestyle, retirement resorts, packaged golf  tours, which have yet to be fully exploited and tapping our universities for specialty courses on Asian history, civilisations and cultures, archaeology and the arts, to name just a few of the fascinating subjects for the silver haired to pursue.

The government may want to consider giving tax incentives or start-up grants to encourage investments in these areas.

I contend that when done well, these niche areas will complement our existing offerings of gourmet food, entertainment buzz, shopping and the upcoming integrated resorts, to tap the multi-billion-dollar silver industry and position Singapore as the undisputed playground for the silver generation.

Singapore has the reputation for being safe and secure, and this appeal must be promoted. Last but not least, as we create opportunities for the well-heeled, we must not forget about the needs of the man in the street.  

Unique issues

Dhirendra Shantilal
Senior Vice-President, Asia Pacific
Kelly Services

UNDERSTANDING the unique needs and issues in the areas of health care, home design, leisure, finance and retirement faced by the elderly population, customising products and services for this niche population and the speed of response to these needs are key to tap into this multi-billion dollar market and grow the silver industry in Singapore.

While it has become increasingly critical for employers to attract and retain mature workers to maintain competitiveness in our evolving economy  where there is a shortage of talent, mature workers can also contribute significantly to the development of the silver industry as they are able to relate to the needs of the industry and empathise with the issues.

Mature workers whose skills and experience can be a continuing source of competitive advantage to organisations can be trainers for younger workers. By allowing mature workers to assume mentoring and training roles, the transfer of skills and knowledge to younger generations is facilitated and provides valuable advantage.

This works hand in hand with the government's recent legislation and initiatives to strongly encourage people to work longer with more flexible schemes that benefit both the employer and employee.

In addition, potential entrepreneurs can benefit from an introduction of a new silver industry business start-up scheme and assistance can be extended to these entrepreneurs with viable projects to obtain financing and support.

This would not only stimulate innovation and entrepreneurship within the business community and capitalise on the energy, creativity and technology existing in the marketplace, but also serve as the catalyst for the growing silver industry in Singapore.

Liu Chunlin
Managing Director
K&C Protective Technologies Pte Ltd

IT is good that the Silver Industry Committee has outlined a master plan and got everyone aware and excited about the business prospects. The important thing now is how to proceed with focus and a winning formula.

It will be too easy for a small country like Singapore with limited resources to fritter away opportunities through diffuse activities. We need to be bold with a concerted effort based on knowledge to stitch together attractive value propositions for a silver lifestyle, not just for Singaporeans but for foreign visitors near and far.

Though it sounds like a motherhood statement, it is important to know what the silver cohort needs and wants even as we chase the silver buck. For a start, the educational institutions could initiate studies so that the needs of the silver baby boomers are better understood, not just in terms of geriatric health but also wellness as the latter encompasses emotional and spiritual well-being.

A paradigm shift is needed and we must see the world from the perspective of the cosmopolitan silver cohort. This outlook should certainly inform every industry, from product to services.

Being focused may not be enough. We will need a sustained effort as there are competing industries like  leisure (from the integrated resorts) and bio-sciences which vie for talent. I guess iconic baby boomers like Steve Jobs and Bill Gates will lend a certain gloss to the silver industry in years to come. We may need other ways to make the industry attractive.

Singapore needs to continue developing its cosmopolitan nature to attract the globe-trotting silver cohort who will not be content to lead a quiet life. We should be a place where the world feels at home.

It is quite logical for the baby boomers to leave some wealth to their children, but at the same time they will certainly also want to enjoy a lifestyle comparable to what they are enjoying now as they move into their retirement years. We need to be ready for this worldwide silver cohort with their buying power unleashed by their lifetime savings.

Others

Jane Prior
Chief Executive
Priority Consultants

THE potential of the silver industry is best seen in the demands and desires of the post-war generation - the baby boomers. Growing up in a world which pushed aside traditional boundaries, they are charging into the silver years refusing to accept any limitations of ageing.

Instead, they strive for well-being, youthfulness and a life of continual learning. Singapore can benefit in several ways from this tsunami of spending power and influence. For instance, it can be a destination for wellness and rejuvenation, supported by the ongoing growth in the arts scene.

In parallel, Singaporeans are also redrawing their own boundaries and the new silver generation will be spending on leisure and quality of life with a focus on meeting personal needs.

What should we do? Keep chipping away at  preconceived ideas about roles and responsibilities and encourage some later life self-actualisation so that being old need not mean being alone and lonely. Rather, it will be a time to learn and to indulge.

Deb Dutta
VP, Asia Pacific & Japan
Brocade

THE silver mop is hard to ignore - and I am not saying this because I am rapidly moving into this category! Today's science, technology and healthcare will see longevity go up substantially.

It therefore becomes a social responsibility for any nation to ensure that employment, healthcare, social security, societal support, housing and financial infrastructure are suitably modified to ensure that this segment of the population is taken care of.

In return, this segment will contribute in gold to society and the country in general. All the experience, achievements and successful track record of this group will provide guidance to the emerging inexperienced workforce and guide them away from the pitfalls of the past while driving them towards success. 

Singapore is setting the right example by employing older workers and taking a leadership stance in promoting the silver industry. This will hopefully set a trend that other nations will follow.

Wee Piew
CEO
HG Metal Manufacturing Ltd

AS a country with a rapidly ageing population, Singapore is indeed in a good position to develop a silver industry. The best way is to engage the senior citizens actively to better understand their requirements. This can be done by a dedicated government agency or a business association.

I think we should not just look at basic healthcare and exercise products targeted at senior citizens. As senior citizens are more likely to live longer and lead a more active lifestyle, I believe products that cater to their entertainment and lifestyle should be an area worth looking at. One example would be media products like dedicated television channels and radio stations that broadcast in dialects with shows from yesteryear.

Annie Yap
CEO
The GMP Group

LIKE any other market, the key to developing a successful silver industry is a thorough knowledge of the demographics and psychographics of the addressed audience. In other words, there is a need to understand what the elderly need and demand as well as how much they can and are willing to spend. The challenge is that the baby boomer demographic spectrum is very broad.

Besides that, there are the regional countries to tap into, with people in the same category but possibly with slightly differing needs. To be able to position Singapore as a choice location for elderly solutions, we need to study the market so that our players enter this promising market fully aware.

I would also like to add that more important than "milking the cow", the solutions that emerge will allow the elderly to enjoy truly golden years. This is an initiative to make their lives easier, happier, and ultimately more fulfilling.

Ng Kong Yeam
Group Executive Chairman
Sino-America Tours Corporation Pte Ltd

THE silver industry is undoubtedly big business as the number of silver haired is increasing daily. To develop a silver industry, a country must have good healthcare, security, good fund management and many options for leisure and travel.

Singapore is an aviation hub, so it's a choice destination for ageing boomers to choose to live. Wealth management is improving to a high level too. Security here is probably the best in the region. Singapore should also encourage linguistic studies so that it will be attractive for people who speak other languages to live here.

To ensure that the silver industry will grow in Singapore, the government must exempt all those who come to live here from estate duty.

Sam Yap S G
Group Executive Chairman
Cherie Hearts Group Int'l Pte Ltd

A MAJOR area that Singapore would do well to look into will be eldercare. Without a doubt, as people age, they'll need more assistance in taking care of their day-to-day needs.

This, in addition to the growing trend of Singaporeans not having children, will translate into an increasing need for community hospitals specialising in eldercare.

On the government's part, proactive planning needs to be done to ensure that sufficient infrastructure and skilled labour are in place to deal with the projected surge in demand.

Something that the government could encourage is the combination of childcare and eldercare under one roof. In this way, both the old and the young can interact and benefit from each other.

Leon Perera
Group Managing Director
Spire Research & Consulting Pte Ltd

PEOPLE aged over 50 now make up roughly 20 per cent of Asia's population, but by 2030 almost half the population of the more mature economies (Singapore, Hong Kong, Australia, Korea and Taiwan) and 37 per cent of China's population will be silver-haired. Yet Spire's research among international firms in 11 regional countries showed that only 23 per cent treat the silver-haired segment as an immediate priority, with a larger percentage seeing mid- to long-term potential. This lack of urgency is belied by the lead times needed to adapt products, brands and go-to-market strategies for senior citizens.

As an international business hub with a rapid rate of ageing, Singapore could become a silver industry innovation hub and  test-bed for Asia, and particularly China, one of the most attractive silver markets of the future. However, given the lack of attention among companies, there is a need for publicity around good examples as well as government support for exemplary innovation efforts through awards, grants and events. Companies with expertise in the silver industry should be attracted to locate in Singapore to "Asianise" their products.

Lastly, the government could consider liberalising the use of the 3Ms - Medisave, Medishield and Medifund - to cover cutting-edge technology products and services for the elderly, so as to encourage test-bedding in Singapore's domestic market.