TOKYO // In less than a decade, the approximately 6.5 million members of the generation born during Japan’s first baby boom (1947-49) will all be 75 years old or older, according to the country’s cabinet office.
Japan will become an aged society the likes of which no other country has ever experienced. As a result, it expects a shortage of labour, medical and social care services, especially in metropolitan areas, a situation referred to in Tokyo as the “2025 Problem”.
While the problem is not yet at crisis levels, the government, health services and businesses are priming themselves to deal with the ageing issue.
For their part, construction firms are seeing opportunities regarding housing provision for the ageing population, Akira Harada, the general manager of the Japan Federation of Housing Organisations, tells The National. "Already many Japanese housing companies are proposing houses where elderly people can live safely and conveniently."
The government has not yet specified the amount of housing required to meet the needs of older people, not least because the present number of housing units in Japan is a little over 60.63 million, exceeding the total number of households. “So people are not only thinking of building new houses … but also of renovating old houses” for older people’s needs, Mr Harada says.
New housing boasts not only superior earthquake resistance but also better material durability and heat insulation. In addition, builders also keep each floor on a level plane so older people can move around safely, and ensure corridors are sufficiently wide for nursing purposes such as wheelchairs, Mr Harada says. “Besides detached housing, new condominiums also offer various features for elderly people,” he adds.
A report by the Japan cabinet office’s economic and social research institute, titled Economic Effects of Retiring Baby Boomers, says Japan’s population peaked at about 128 million in 2010 and is expected to be about 52 million in 2100 following a decrease in population.
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At a glance
What: The Japanese population is ageing rapidly and decreasing so steps must be taken.
Why: With fewer workers across all sectors, the economy could be negatively impacted.
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Japan’s total fertility rate (TFR) – the number of children who would be born per woman if she were to pass through the childbearing years bearing children – has decreased rapidly since the first baby boom. From the mid-1950s until the mid-1970s, the TFR was about 2, but has been decreasing steadily since then, the report says.
Consequently, the ratio of the dependent population (0 to 14 and 65 and over) is increasing rapidly (in Japan, compulsory schooling runs through junior high school, with graduation at 15). The generation of the first baby boom is particularly expected to increase dramatically from around 2025, when its members will reach 75 years of age or older, the institute says.
Japan’s productive age population (15-64) peaked in 1995 and is decreasing steadily. The ratio of the productive age population to the 15 to 64 total is expected to be only about 50 per cent in 2060, the report says.
Compared with other developed countries, the labour force participation of elderly people (65 and over) in Japan is high, at 19.3 per cent, compared with 16.7 per cent for the United States, 8.8 per cent for the United Kingdom and 2 per cent for France. The results of a survey the cabinet office conducted in 2013 showed 25 per cent of the first baby boom generation want to work as long as possible.
Demand for doctors, nurses and medical staff is expected to increase by about 30 per cent in 2025 over 2011, and demand for social care staff is expected to increase by 50 per cent in 2025 compared to 2013. However, the productive age population is expected to decrease by 10.4 per cent during the same period, the cabinet report says.
National health insurance is one of the two major types of insurance programmes available in Japan. The other is employees’ health insurance. National health insurance is designed for people who are not eligible to be members of any employment-based health insurance programme.
Although private insurance is also available, all Japanese citizens, permanent residents, and any non-Japanese residing in Japan with a visa lasting three months or longer are required to be enrolled with either the national health insurance or an employees’ health insurance scheme.
National health insurance requires medical services users to pay 30 per cent of their medical expenses. People 70 to 74 years old with a taxable annual income of less than ¥1.45 million (Dh48,824), as well as their dependants, pay 20 per cent. Dependants are an adult’s spouse or offspring whose monthly working hours are less than three quarters that of average workers, with an annual income of less than ¥1.3m. People over 75 years old with a taxable annual income of less than ¥1.45m, as well as their dependants, pay only 10 per cent. Children under six pay only 20 per cent.
The ministry of health, labour and welfare plans to provide additional financial support to the national health insurance system starting in fiscal year 2018. The government will raise the national consumption tax from the current 8 per cent to 10 per cent in October next year, allowing it to add money to the health insurance system, the Japan Medical Association executive board member Kunihiko Suzuki tells The National. The association has about 168,000 members.
“We hope and expect to have these new amounts made available as financial resources for this purpose,” Mr Suzuki says.
No money will come from the private sector, however. “In Japan, private enterprise participation is not permitted in the healthcare system,” he says.
Pharmaceutical research is undertaken by private companies and university research centres as well as through joint ventures, says the Japan Pharmaceutical Manufacturers Association senior managing director Akira Kawahara. Population ageing will not impact the direction of the 72 members’ research priorities, Mr Kawahara says.
“The mission assigned to us as a life-related industry is clear, and there is nothing in the future that will change it, despite a very intense environment for such a change,” he says.
The manufacturing sector has not yet been overly affected by population ageing and decline, says Nicholas Smith, an analyst at CLSA Japan, the Tokyo office of the Hong Kong brokerage agency CLSA. However, the government does plan to give an increasing amount of money to machine research to cover a future deficit in manpower, Mr Smith says, without giving details.
But the service sector will have trouble attracting people, as it is the least popular sector to work in, Mr Smith says. “The salary is low, businesses tend to be low-grade, pride in the job is lower, job security is lower,” he says.
The Ireland-based journalist Eamonn Fingleton, who has written three books on the economies of East Asian countries, says the ageing of Japan’s population means the workforce is declining, thus growth in overall GDP is a lot slower than it was when the workforce was expanding.
These demographics are ultimately traceable to a Japanese government decision in the late 1940s to reduce the birth rate, Mr Fingleton says. “The main programmes were implemented under the Eugenic Protection Act of 1948, and within a few years, the birth rate was reduced by half,” he says.
Looking to the longer term, it is a reasonable bet that the Japanese population will stabilise of its own accord, as most couples want to have two children and some have three, thereby generating enough children to replace those people who are at the end of their lives, Mr Fingleton says.
Japan will continue to rank as a major player in manufacturing, and particularly in advanced manufacturing, he says. “That is the sort of industry that requires large amounts of capital and production know-how,” he says.
For Kokichi Shoji, a professor emeritus of sociology at the University of Tokyo, Japan’s main stumbling block in resolving the issues of ageing society and depopulation is Tokyo’s refusal to take in immigrants in any significant number.
"If we do not accept more serious and cooperative people from abroad, there will eventually be not only a shortage of general workers but also of specialised ones such as care workers, nursery school teachers, nurses, which will hinder social revitalisation," Mr Shoji, a specialist on contemporary social change, tells The National.
“It is unfortunate that Japanese citizens and the Japanese government are closed-minded and do not want to accept either refugees or immigrants.”
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The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
UAE currency: the story behind the money in your pockets
More from Neighbourhood Watch:
More from Neighbourhood Watch:
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
The specs
Engine: 3.8-litre, twin-turbo V8
Transmission: eight-speed automatic
Power: 582bhp
Torque: 730Nm
Price: Dh649,000
On sale: now
UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)
Results:
CSIL 2-star 145cm One Round with Jump-Off
1. Alice Debany Clero (USA) on Amareusa S 38.83 seconds
2. Anikka Sande (NOR) For Cash 2 39.09
3. Georgia Tame (GBR) Cash Up 39.42
4. Nadia Taryam (UAE) Askaria 3 39.63
5. Miriam Schneider (GER) Fidelius G 47.74
57%20Seconds
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Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
BULKWHIZ PROFILE
Date started: February 2017
Founders: Amira Rashad (CEO), Yusuf Saber (CTO), Mahmoud Sayedahmed (adviser), Reda Bouraoui (adviser)
Based: Dubai, UAE
Sector: E-commerce
Size: 50 employees
Funding: approximately $6m
Investors: Beco Capital, Enabling Future and Wain in the UAE; China's MSA Capital; 500 Startups; Faith Capital and Savour Ventures in Kuwait
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
On sale: Now
Election pledges on migration
CDU: "Now is the time to control the German borders and enforce strict border rejections"
SPD: "Border closures and blanket rejections at internal borders contradict the spirit of a common area of freedom"
Bio:
Favourite Quote: Prophet Mohammad's quotes There is reward for kindness to every living thing and A good man treats women with honour
Favourite Hobby: Serving poor people
Favourite Book: The Alchemist by Paulo Coelho
Favourite food: Fish and vegetables
Favourite place to visit: London
If you go
The flights
Emirates flies from Dubai to Seattle from Dh5,555 return, including taxes.
The car
Hertz offers compact car rental from about $300 (Dh1,100) per week, including taxes. Emirates Skywards members can earn points on their car hire through Hertz.
The national park
Entry to Mount Rainier National Park costs $30 for one vehicle and passengers for up to seven days. Accommodation can be booked through mtrainierguestservices.com. Prices vary according to season. Rooms at the Holiday Inn Yakima cost from $125 per night, excluding breakfast.
Analysis
Members of Syria's Alawite minority community face threat in their heartland after one of the deadliest days in country’s recent history. Read more
8 traditional Jamaican dishes to try at Kingston 21
- Trench Town Rock: Jamaican-style curry goat served in a pastry basket with a carrot and potato garnish
- Rock Steady Jerk Chicken: chicken marinated for 24 hours and slow-cooked on the grill
- Mento Oxtail: flavoured oxtail stewed for five hours with herbs
- Ackee and salt fish: the national dish of Jamaica makes for a hearty breakfast
- Jamaican porridge: another breakfast favourite, can be made with peanut, cornmeal, banana and plantain
- Jamaican beef patty: a pastry with ground beef filling
- Hellshire Pon di Beach: Fresh fish with pickles
- Out of Many: traditional sweet potato pudding
From Zero
Artist: Linkin Park
Label: Warner Records
Number of tracks: 11
Rating: 4/5
Expert advice
“Join in with a group like Cycle Safe Dubai or TrainYAS, where you’ll meet like-minded people and always have support on hand.”
Stewart Howison, co-founder of Cycle Safe Dubai and owner of Revolution Cycles
“When you sweat a lot, you lose a lot of salt and other electrolytes from your body. If your electrolytes drop enough, you will be at risk of cramping. To prevent salt deficiency, simply add an electrolyte mix to your water.”
Cornelia Gloor, head of RAK Hospital’s Rehabilitation and Physiotherapy Centre
“Don’t make the mistake of thinking you can ride as fast or as far during the summer as you do in cooler weather. The heat will make you expend more energy to maintain a speed that might normally be comfortable, so pace yourself when riding during the hotter parts of the day.”
Chandrashekar Nandi, physiotherapist at Burjeel Hospital in Dubai
Company%C2%A0profile
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THE SPECS
Engine: 6.75-litre twin-turbocharged V12 petrol engine
Power: 420kW
Torque: 780Nm
Transmission: 8-speed automatic
Price: From Dh1,350,000
On sale: Available for preorder now
MATCH INFO
BRIGHTON 0
MANCHESTER UNITED 3
McTominay 44'
Mata 73'
Pogba 80'
Abu Dhabi traffic facts
Drivers in Abu Dhabi spend 10 per cent longer in congested conditions than they would on a free-flowing road
The highest volume of traffic on the roads is found between 7am and 8am on a Sunday.
Travelling before 7am on a Sunday could save up to four hours per year on a 30-minute commute.
The day was the least congestion in Abu Dhabi in 2019 was Tuesday, August 13.
The highest levels of traffic were found on Sunday, November 10.
Drivers in Abu Dhabi lost 41 hours spent in traffic jams in rush hour during 2019
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
Is it worth it? We put cheesecake frap to the test.
The verdict from the nutritionists is damning. But does a cheesecake frappuccino taste good enough to merit the indulgence?
My advice is to only go there if you have unusually sweet tooth. I like my puddings, but this was a bit much even for me. The first hit is a winner, but it's downhill, slowly, from there. Each sip is a little less satisfying than the last, and maybe it was just all that sugar, but it isn't long before the rush is replaced by a creeping remorse. And half of the thing is still left.
The caramel version is far superior to the blueberry, too. If someone put a full caramel cheesecake through a liquidiser and scooped out the contents, it would probably taste something like this. Blueberry, on the other hand, has more of an artificial taste. It's like someone has tried to invent this drink in a lab, and while early results were promising, they're still in the testing phase. It isn't terrible, but something isn't quite right either.
So if you want an experience, go for a small, and opt for the caramel. But if you want a cheesecake, it's probably more satisfying, and not quite as unhealthy, to just order the real thing.
Israel Palestine on Swedish TV 1958-1989
Director: Goran Hugo Olsson
Rating: 5/5
