The majority of trends within the Australian aged care industry are reflected worldwide, and industry challenges here will also need to be solved on a global scale.
Expected trends around ageing populations are already happening in Asia. Singapore is already defined as an ageing society with 14% of their population over 65. Malaysia is not far behind, expected to be an ageing society by 2035. China has one of the fastest growing ageing populations in the world. A combination of the one-child-policy and an under-supply of aged care services means that China is now facing a ratio of 4:2:1; where one young person is responsible for caring for their two parents and their four grandparents.
Where does the opportunity stem from?
- Favourable policies aimed at aged care
Policies like Action Plan for Successful Ageing in Singapore and Healthy China 2030 outline government priorities and commitment to aged care. There are opportunities for Australian ideas to be exported into Asian care systems to help policy-makers achieve their priorities.
- Fading concept of “filial piety”
Traditionally, “filial piety” has meant that, in some Asian countries, children have been obliged to care for their parents. As a result, the issues associated with institutional aged care have not been addressed. Recently, the concept of “filial piety” is being contested by a greater number of females in the workforce, as well as the globalisation and movement of the growing middleclass.
- Growing middle class – greater ability to pay for aged care for parents and for future selves
Dr Homi Kharas presented in an OECD working paper that between 2009 and 2030, China will add 850 million to its middle class. This trend will extend across other Asian markets, meaning there is increased ability to pay for and invest in aged care.
The world is turning to the Australian model of care
Australia has a leading model of care for the elderly, which is increasingly being sought from Asian markets. Our system was named in China’s 13th Five Year Plan (2016-2020) – Promoting a Healthy China, as well as Taiwan’s Long Term Care 2.0. Austrade has identified that there is demand for Australian expertise in the following areas:
- Consulting services on investing into aged care facilities
- Architectural design services
- Operation and management services
- Accreditation services for residential aged care operations
- Dementia and palliative care services Software and IT Solutions
Do you have an innovative idea for the aged care sector?
Apply now for CareFactor – Australia’s first aged care incubator program.