An ageing nation is when 7% of its population are 64 years old and above. Malaysia may soon enter the ageing nation status by 2030, together with many other advanced nations since many years ago. Definition wise, ageing nation is just the beginning. Moving on, an Aged Nation would be when the nation has 15% of its population at 64 years old and above. Singapore is one such example of an aged nation. Japan is today a Super-Aged nation. It has over 20% of its population above 64 years old. A nation with 20% of its population aged 64 or older is a Super-Aged nation.
This is the comment of Robert Samuelson in an article in japantimes.co.jp He is a Washington Post columnist. He said, “[Japan] is facing a situation of a declining population and workforce, and the share of the population that is elderly is on the rise. [This is] driving up government spending on pensions and health care, and together with attempts to stimulate its economy through government spending (much of it on infrastructure), Japan has run up an enormous government debt.” To put it bluntly (as I have argued before): Japan is slowly going out of business; its population is shrinking and it resists immigration. This cannot continue indefinitely. Please do read his full commentary here. Very interesting view indeed.
Declining population means a declining workforce. This will start to drain more of the government’s resources and that meant that it’s going to be ever harder for the government to care for the huge population of the elderly. They want to do more but it’s highly unlikely that it will ever be enough. Coupled that with a very strict immigration policy simply meant that the population will start declining.
This is what’s happening to the Japan population. From wikipedia: Japan’s population began to decline in 2011. In 2014, Japan’s population was estimated at 127 million; this figure is expected to shrink to 107 million (16%) by 2040 and to 97 million (24%) by 2050 should the current demographic trend continue. Full article here in wikipedia here.
Demand for goods and services will continue to shift with every passing generation. Just need to keep paying attention to the median age for an understanding of what’s coming in the future yeah. Country of Niger in Africa has a median age of just 15. Japan has a median age of nearly 47. Malaysia’s median age is 29.
Malaysia is projected to become an ageing nation by 2030. Not too faraway in the future actually. If you would also like to know where the top 20 nations where the population is dropping the most, please read a Business Insider article here. Japan is nowhere near the top in rankings. Will keep updating everyone yeah. If you find this interesting, please feel free to share too yeah.
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