Silver economy brings new markets and ageing pressures to Asia

People aged 60 and over account for an estimated US$19 trillion in annual consumer spending worldwide, projected to reach US$34 trillion by 2036. For Asia, this expanding silver economy offers opportunities in healthcare, tourism and technology while increasing pressure on pension systems, long-term care and public transport.

These competing pressures framed the Silver Economy Forum in Kuala Lumpur, Malaysia, on Wednesday (November 11), where officials and researchers from Japan, China and Southeast Asia discussed how longer lives could support economic growth without deepening social and financial inequalities.

Liu Ye, chief of the Population and Development Division in the Department of Social Development at China's National Development and Reform Commission, noted that people aged 60 and over account for approximately 27% of global consumer spending, a share expected to approach one-third by 2036.

By 2050, the Asia-Pacific region could have nearly 1.3 billion people aged 60 and above, representing one-quarter of its population. Liu highlighted growing demand for senior tourism, smart technology and health management, alongside older people's continuing contribution to the workforce.

"Ageing is one of the most certain demographic changes of the 21st century, and it is not only a challenge, but also provides real economic growth," he told the forum.

Uneven ageing and gaps in protection

Dr Liem Nguyen, programme manager for social welfare at the Economic Research Institute for ASEAN and East Asia (ERIA), described differences in demographic change and preparedness across ASEAN+3.

Japan and South Korea face advanced population ageing, while Thailand and Singapore have substantial older populations. Vietnam, the Philippines and Malaysia are at earlier stages, and Cambodia, Laos and Myanmar remain relatively young.

Uneven incomes, pension coverage and employment support add to the challenges, particularly in economies with large informal workforces.

ERIA research in the Philippines and Vietnam found that 30–50% of older people were still working. Across the countries surveyed, approximately half of those who had stopped working attributed their departure to health problems.

Yet about 20% of older people without functional limitations were not working, while 30% of those with health limitations continued to work. Roughly one-third of employed older respondents wanted to keep working for as long as their energy permitted.

"It is not just about savings and how older people are spending money, but it is about employment for older people," Nguyen argued.

He identified health, financial security and policy gaps as barriers to securing a silver dividend. ASEAN lacks a regional silver-economy strategy, although the Philippines began discussions following a meeting in Manila in June.

ERIA is also studying sustainable financing for integrated care with partners including the United Nations Population Fund, World Health Organization and US-ASEAN Business Council.

Policies taking shape across Asia

Speakers outlined several approaches to balancing ageing-related needs and economic opportunities:

• Japan's social protection system: Nguyen traced its preparations to universal pension coverage in 1961 and legislation supporting older workers in 1971. Long-term care insurance followed in 2000, complemented by community-based integrated care.
   
• Osaka's transport and healthcare innovation: Tomonori Misono, director general of the Department of Policy and Planning at the Osaka Prefectural Government, described how declining passenger numbers threaten public transport. "When the population decreases, trains and buses end up carrying empty air. When that happens, transport operators either reduce service frequency or raise passenger fares." He advocated artificial intelligence (AI) and closer coordination among operators. Osaka showcased preventive healthcare at Expo 2025 and is preparing for WHX Osaka on June 30–July 2, 2027, alongside a planned WHX Leaders Osaka conference on July 2.
   
• China's national strategy: Liu outlined a 2024 policy framework to expand products and services for older consumers, strengthen businesses, improve regulation and promote technology, supported by financing, staffing and pricing measures. He valued China's silver economy at about 10 trillion yuan (US$1.5 trillion), or 7% of gross domestic product, in 2025, potentially rising to 30 trillion yuan by 2035. Nearly 600,000 related enterprises operate in the sector, he reported.

China's demand is also evident in tourism. More than 2,500 tourist trains operated nationwide in the first eight months of 2026, with older travellers accounting for nearly 80% of passengers. Liu also highlighted the gradual increase in China's statutory retirement age, recognising older people as producers as well as consumers.

"The role of planning, however, is not to micromanage, but to set directions, provide expectations, allocate resources, and establish rules," Liu explained. "We think that what enterprises fear most is not competition, but uncertainty."

Bayer's focus on healthier years

In a subsequent fireside discussion, Simon Rosof, region head for Asia Pacific at Bayer's Pharmaceuticals Division, emphasised medical innovation, early intervention and cooperation. Asia-Pacific accounts for approximately 26% of Bayer's pharmaceutical business, he noted.

The company's priorities include chronic kidney disease, diabetes, heart failure, cancer, retinal diseases that can cause sight loss, women's healthcare, including menopause, and recurrent stroke prevention. Rosof highlighted partnerships in China, South Korea, Singapore and Japan, emphasising that Asia-Pacific was increasingly developing new treatments rather than simply receiving innovations from elsewhere.

He recalled meeting an Asian man diagnosed with prostate cancer shortly after entering retirement. Earlier treatment had left him with depression, constant fatigue and "brain fog". After receiving a medicine used to treat advanced prostate cancer, he resumed travelling with his wife and spending time with their children and grandchildren. His wife told Rosof that they had "got back their golden years".

"These should be the best years of people's lives, not the years when they're facing health challenges and giving up all of the things they love," Rosof remarked.

Stroke remains another regional concern. According to the World Stroke Organization–Lancet Neurology Commission, Asia accounted for approximately 61% of global stroke deaths in 2020, a share projected to approach 69% by 2050. Among survivors of certain ischaemic strokes, roughly one in 10 experiences another within a year and one in five within five years.

Rosof stressed that strokes could also force relatives into caregiving roles, bringing wider social and economic costs, while recurrent strokes were often more debilitating than the first.

A Bayer treatment designed to reduce the risk of recurrent stroke in eligible patients recently received regulatory approval in both China and the United States. Rosof hoped it would become more widely available across the region.

He also identified AI as a means of accelerating pharmaceutical research. Developing a new medicine typically takes 12–15 years, he noted, while Bayer aims to reduce development timelines by about 30% through AI working alongside scientists.

As an example, he described a gene therapy company that combined AI with scientific expertise to identify and prioritise promising research opportunities in 90 days, compared with approximately a year through conventional methods.

"The reality is that this isn't something that our company can do alone," Rosof stressed. "In order to have an impact on patients in all of these critical areas, it's really important that we partner with governments around the region."

He called for cooperation with hospitals, researchers, non-governmental organisations and patient groups, alongside earlier screening, diagnosis and treatment, to help ensure that longer lives also become healthier ones.