Financial news: Younger population better or older is better? What about Malaysia?

Financial news: Younger population better or older is better? What about Malaysia?

Do you know what’s the median age of Malaysia’s population and what’s the median age of Indonesia, Thailand, the Philippines and Singapore’s median population age? Which country is considered the oldest among these few?

According to worldeconomics.com

Median age of Malaysia is 29.9 years old. Indonesia’s at 29.4, Thailand’s at 39 and Singapore’s at 42 years. Singapore is considered a developed nation. Japan’s median population age is 48.4 years. If we have a population pyramid, Malaysia’s one is as below:

Any country with a median age of 40 or higher, their top portion of the pyramid would most probably be bigger. In other words, the older population.

Let’s look at Japan as an example:

There are three types of population pyramids

Info Source: visualcapitalist.com

• Expansive Pyramids: Recognized by their traditional “pyramid-like” shape with a broad base and narrow top, expansive pyramids reflect a population with a high birth rate along with a high mortality rate which is most common in developing countries.
• Constrictive Pyramids: With a narrow base and thicker middle and top sections of the pyramid, constrictive pyramids often occur in developed economies whose populations have low birth rates and long life expectancies.
• Stationary Pyramids: These pyramids showcase an evenly distributed population across age groups, often found in newly-developed countries which have stable birth and mortality rates.

Investment potential?

Regardless of the median age, investment potential will be available. Just that the kind of investments we do would be different yeah. With an ageing population, who would buy your property in the future? Unless of course the country attracts a lot of new investors who buy and also stay. However, we could invest into companies which are catering to the older population. This will be a safe bet because the older population would continue to grow every year. After they sing the birthday song, they are one year older. 🙂

I am happy that Malaysia’s median age is at 30

It’s like a person who’s 30. Full of potential. Has gained sufficient experience for th enext growth phase. Unfortunately I am way past this age. However, if I add my age and my daughter’s age and divided by 2, I am not too far away from this number; 30. Haha.

If someone’s at close to 50, it also meant that this person has already achieved a lot. This person may now be slowing down a little so that he / she could enjoy what they have earned thus far. They are more likely to be less aggressive too. Can be bad too; there’s not going to be many new breakthroughs in the future. How many people at the age of 50 is still trying to invest furiously?

Some other population pyramids

Source: visualcapitalist.com

A younger population means there are more potential workforce to propel the economy further. However, it also meant that perhaps the infrstructure and everything necessary may not necessarily be ready. We could see this with Africa vs Europe below. Perhaps this is the best time for the European countries to be great trading partners to the African countries. Then, this would be the best of both worlds.

Happy understanding.

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