OVERVIEW PERFORMANCE SUSTAINABILITY FINANCIALS APPENDIX 39 ANNUAL REPORT 2024 integrated rehabilitation and Traditional Chinese Medicine (“TCM”) sanctuary (“Jervois Wellness”), offering preventive and post-care services to communitydwelling seniors and seniors who no longer require residential care at Parry Assisted Living Care. MARKET OUTLOOK China is facing a rapidly ageing population, with 28% of its population expected to be above 60 years of age by 20301. Driven by the increased need for care as its population ages, China is seeing a burgeoning senior care market, which will reach US$3 trillion by 20302. Committed to improving population health, strengthening the healthcare system, improving access to quality healthcare services and promoting the development of medical technology, the government’s “Healthy China 2030” initiative has drawn up blueprints for developing the healthcare industry, which is targeted to reach RMB16 trillion (approx. US$2.4 trillion) by 20303. The move towards a healthier population, together with strong demand drivers, such as the need for personalised, multi-layered and highend healthcare services, longer life expectancy and management of complex health issues, could further accelerate the spending on quality retirement in the future. Perennial Holdings’ healthcare-centric HSR TODs will also ride on China’s continued expansion of its extensive HSR network. By the end of 2024, the cumulative fixed-asset investment in the national railway reached RMB850.6 billion, a YoY increase of 11.3%, with 3,113 kilometres (“km”) of new railway lines put into operation4. Specifically, in December 2024, three new HSR lines were inaugurated. Among them, the Shanghai-Suzhou-Huzhou HSR, which started operations in December, is particularly beneficial for Perennial Holdings’ eldercare facilities in Shanghai. The sustained growth in railway network investment and the growing connectivity enables the Company’s healthcare-centric HSR TODs to serve a wider catchment from neighbouring cities. From 2025 to 2035, the Chinese medical tourism industry is expected to undergo substantial development, with market value climbing from an estimated USD11.3 billion to USD22.8 billion, driven by a 7.2% CAGR5. Driven by domestic and international medical tourism, hospitality components within the Company’s healthcare assets will support this surge of medical tourism. It also features a comprehensive suite of conference and meeting room facilities to support MICE activities, such as medical conferences, within the healthcare industry. With a winning business model integrating medical care, eldercare, rehabilitation and wellness through its various healthcare-centric HSR TODs and comprehensive eldercare businesses, supported by its growing hospitality portfolio, Perennial Holdings is well-positioned to capture the growing opportunities in the multi-trillion dollar medical care and eldercare market. Singapore Singapore is facing a similar trajectory of a rapidly ageing population that is outpacing the rising global trend. By 2030, one in six people worldwide will be aged 60 or older6, but in Singapore alone, one in four7 will be aged 65 or older. Despite this demographic shift, the expansion of eldercare-related infrastructure and services has yet to keep pace with the needs of the growing elderly population. In particular, there is a significant demand for support among the “middle” group of older adults, those who are partially dependent and unable to age in place independently but do not qualify for nursing home care. To address the needs of its growing ageing population, the Singapore government announced several initiatives and allocated substantial funding to support their implementation. About S$3.5 billion has been set aside over the next decade for “Age Well SG”, a national programme designed to help seniors age actively, stay socially connected and receive care within their communities8. This includes infrastructure upgrades, expanded assisted living options and improved home care services. The national healthcare reform programme, “Healthier SG”, will be expanded to integrate TCM9, emphasising holistic and preventive care. The Ministry of Health has also outlined plans for new healthcare and eldercare facilities between 2024 and 2030 to strengthen support for the elderly population. Perennial Holdings aligns with the government’s vision for the health and well-being of Singapore’s seniors, with a particular focus on promoting active ageing and proactive healthcare. As the ageing population grows, the demand for new healthcare and eldercare services is expected to rise over the long term. At the same time, increasing affluence is driving demand for higher-quality, personalised care services. Singapore is established as one of the leading global centres for private banking and wealth management, particularly in Asia10. In 2023, the Assets Under Management in Singapore increased by over 8%, maintaining the upward trend observed in recent years. The five-year compounded annual growth rate stands at approximately 10%11. 1 World Health Organisation https://www.who.int/china/health-topics/ageing 2 International Trade Administration https://www.trade.gov/market-intelligence/china-senior-care-market 3 China Briefing, 12 June 2023 https://www.china-briefing.com/news/understanding-chinas-rapidlygrowing-healthcare-market/ 4 China Daily, 10 February 2025 https://www.chinadailyhk.com/hk/article/604190 5 Future Market Insights, China Medical Tourism Industry Analysis from 2025 to 2035: https://www.futuremarketinsights.com/reports/china-medical-tourism-market 6 World Health Organization, 1 Oct 2024 7 Ministry of Health Report, 13 August 2024 8 CNA, 16 February 2024 https://www.channelnewsasia.com/singapore/budget-2024-s35-billion-be-set-aside-over-next-decade-help-elderly-age-well-4128751 9 CNA, 27 October 2024 https://www.channelnewsasia.com/singapore/tcm-practition-expansion-scheme-healthier-sg-ong-ye-kung-4705821 10 Monetary Authority of Singapore website 11 “To Grow Wealth, To Steward Wealth, and To Give Wealth” – Speech by Mr Alvin Tan, Minister of State, Ministry of Trade and Industry and Ministry of Culture, Community and Youth, and Board Member of MAS, at the Launch Event of Arta Finance on 11 October 2024
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