The Silver Market: Perspectives
Pfrom Singapore
Presented byb C C Hang
Division of Engineering & Technology Management
National Universsity of Singapore• Introduction• Demographic Changess• Appropriate R&D and Innovation• Silver Market Reality• Concludingg Remarks

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DISCLAIMER
No portion of these materials is to
be used or disseminated by any
method without the expressed
written consent of the presenter(s)and the German Institute forJapanese Studies (DIJ).

1

Demographic Channge

Source: IMF, 2006

Copyright: Dr. Florian Kohlbacher and Prof. CC Hang

Business Implicatio
ons ofDemographic Changge
Demographicc Change- Agingg g- Shrinking

Challenges/threats- Workforce crisis- Lost knowledge- Shrinking customer base

Chances/opportunities- SilverSilmarket/k t/ SilverSilbusinessb i- New product offerings- New service offerings

Copyright: Prof. Dr. Cornelius Herstatt andDr. Florian Kohlbacher

Singapore-newly developed naation
youthful spirit; vibran
nt economic development;
young leadership

B Ageing
A i nation
ti ? ?

B affordable health care cost
B quality lifestyle & living environment forits
ts seniorse o ccitizent enss

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In this paper:− Implications of Demographics Changes in S’pore− Potential Solutions¾ technology
t h lperspe
ectiveti¾ business developm
ment and innovation
perspectiveti

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Demographic Changees• What will be the demograp
phic landscape of Singapore

in 2020?
− Fig. 1(a) B Even in 20005, more than 50% adults(> 14 yrs old) are not inn “family with children
situation”− Fig.
Fi 1(b) B By
B 20202020, reetired
ti d adults
d lt iincreasedd ffrom
8% to 21% (+ 160% !); “working age emptynesters” increased fromnesters
m 19 to 25% (+ 31%)

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6Percent of adult population 2005
Japan(a)

35%

14%

Korea

47%

China

35%

India

9%

22%

15%

12%
17%

21%
51%

Singapore
10%

20%

18%

9%

17%

9%

32%

45%
0%

20%

16%
30%

40%

50%

11%
60%

70%

7%

6% 4%

19%
80%

8%
90%

100%

Percent of adult population 2025

(b)

Japan

30%

8%

9%

Korea

28%

9%

11%

China

26%

9%

India

24%
29%

13%

32%
0%

20%

30%%
10%
40%

23%

3
33%

45%

Singapor
e30%

12%

19%
10%

25%
60%

9%

5%

21%
80%100%

Fi 1 CFig
Comparison
ioff LifLifestylet l PProfiles
fil 20005 andd 2025 (extracted( t t d ffrom [1])D-EETM7D-EETM

8

− Silver-haired (Aged) Population
P− Aggravated by the loww fertility rate (far below thereplacement level)¾ government to relaax immigration rule
¾ public and private ssector companies need toget better preparedd avoid/reduce
id/ dththrreatst
 take advantage of emerging opportunities

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9Appropriate R&D/Innovvation
Public Sector Research:− Two major universities (NUS & NTU)
N:
multidisciplinary
ltidi i li
engineering
ii reesearchh whichhi h createst relevantlttechnologies that may have impact on personal wellness, quality
lifestyle and living environmentt for the aged
Example: “Assistive Technnology for Personal Wellness and Quality
Living”− Research institutes under Agenc
cy for Science, Technology & Research(Institute for Infocomm Researchh, S’pore Institute of Manufacturing
Technology etc) develop enabling technologies
Technology,technologies.
− National Research Foundation – Special Call for Competitive Research
Programme in the area of Ageing
g Population.
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10Matrix Chart showing the proje
ects and their linkage
to various research objectives
Prommoting
healtthy
lifesttyle

Improved diagnosticand monitoring
techniques forg
degenerativeillnesses

Improved
treatmentcompliance

Supportfor care giving

No.

Project title

1.

Augmented Reality (AR) in Assistive
Technology (AT) Devices
Smart Living Environment

√
√√

√

√

3.

Improved Diagnostic, Monitoring & Treatment
Techniques for Degenerative Diseases

√

√√

√

4.

Development of An Intelligent
Physiotherapy SystemIntelligent electro-acupuncture technology andDevice
C t tdContext-dependentd t medicationdi ti Serving
S i systemt√√√√√√√√Development of a Computer- Controlled
Adjustable Seat System for Therapeutic andRehabilitation Purposes
Wireless Sensor Networks in HomeE iEnvironmentt ffor Telephysiotherapy
T l h i th√

Ambient Assisted Living for the DependantSocietyBalancing Rehabilitation Training and Controlfor Individuals with Weak Motors

√

11
11.

Rehabilitation of Hand Function after Stroke√

12.

Detection of Abnormal Conditions in Activitiesof Daily Living
Assistive Technology for Diabetes Management√√√√

2.

5.
6
6.
7.

8.
9.
10.

13.

Fig. 2√

√√√√√

√

√√√

√
√

√

√

An Example of broad R&D proposal
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Singapore in 2020
• Scenario 1: Ageing SocietyS¾ Mobility
M bilit¾ Healthcare¾ Communication¾ Productivity/Autonnomy
Socio-economic issues canc be incorporated in theprogramme

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Private Sector:• First-ever Silver Industryy Conference & Exhibition
in S’pore held on 12-13 Jan 2008
B 35 companies (mosstly new high-end ormatured products allready proven in advancedcountries)• Tiny market (population of 4.5 million)• But Singapore could be a good test-bed for new
products for the mass markets
pmin Asia (outside(Japan)
B Disruptive Productss ??
D-EETM14• Majority of aged consum
mers may need specifichealth care on a prolong
ged basis as they are livinglonger• Healthy senior citizens (better educated) want areasonable lifestyleyBSilver Market: pricee-sensitive and priceperformance
DisruptiveDiti T
Technologies:
h l i“G d enough”“Goodh”
performance, simple-to-u
use and affordable !
D-EETM15Silver Market Realityy• Spire’s
S i ’ RResearchh (2007)¾ only 23% of internattional companies in 11
regional companies currently employedmarketing strategiess targetting the population
aged over 50• Singapore
SiGovernment’
Gt’’s’ strategiest t i iinclude
l dattracting MNCs to use Singapore
Sas a R&D hub to“Asianise”
Asianise their productts and also use Singapore asa “test-bed” for Asia.
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16• One advantage of Singa
apore is that theGovernment could play a role (with its Ministerial
Committee on Successfuul Ageing) :− public budget to help test-bedding disruptivesolutions which are affordableawith “goodenough”
g functionalitie
es and qquality
y for thebenefit of heartland seniorss− from S’pore to the reggion, similar to the
spread of S’pore stylee public housing(S b(Surbanaexportingti kknowhow
handd solutions
l ti
tto
Middle-East, China, etc)
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17

Concluding Remarkss• Huge opportunity for S’p
pore-based MNCs andSMEs which apply the rightr
innovation strategies
to develop appropriate productspand services• Key
K technologies
t h l i ddevellopedd iin ththe R&D llabs
b off
public and private organ
nizations tend to beradical high-end applications.
radical,ations We need toquickly reshape them ass disruptive technologies
suitable for the silver maarket.

Silver market perspectives
1 Sept 08

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