As China faces the mounting challenge of providing care for its growing elderly population, one Singapore-based real estate and healthcare firm is seeing a significant business opportunity. Perennial Holdings, headquartered in Singapore, is positioning itself to capitalize on the needs of China’s aging baby boomer generation, which will see over 400 million people enter their 60s in the next decade.
For Perennial, the increasing demand for premium elderly care services represents a chance for sound returns on investment. This group, born during China’s tumultuous 1960s, has benefited from the country’s economic rise over recent decades, but now finds itself facing a new set of needs. “When people have a certain level of income, they are accustomed to a certain level of medical treatment. It cannot be entirely catered for by the government,” said Pua Seck Guan, chairman and CEO of Perennial Holdings, in a recent interview.
China, the world’s second-largest economy, is confronting a slowing growth rate and the lasting effects of its decades-long one-child policy, which has led to a low birth rate. This demographic shift has resulted in a growing population of senior citizens, putting unprecedented pressure on the country’s healthcare and social services.
Current estimates suggest that only 3% of retirees in China will be able to access nursing homes or other specialized senior care facilities. The majority will likely remain at home or rely on local community support for care. The Chinese government has acknowledged the challenge and is calling for increased private sector involvement in elderly care services—ranging from the production of medical supplies like diapers and wheelchairs to the development of nursing homes and entertainment tailored to seniors. This expanding “silver economy” is expected to reach a value of US$4.2 trillion (S$5.8 trillion), according to state media.
With China’s population of 1.4 billion, the potential for growth in the elderly care market is enormous, and Perennial Holdings is betting that the demand for high-quality services among wealthier pensioners will generate substantial returns.
