The region faces a sharp demographic turn that will weigh heavily on growth and puncture deep holes in many fiscal balance sheets if better preparations aren’t taken.
According to this report from HSBC, in the next ten years, demographic headwinds could shave 0.5 to 1.2ppt off economic growth in China, Hong Kong, Korea, Singapore, Taiwan and Vietnam. That’s not inevitable, but, without corrective policies, quite likely.
One step they can take is to make the workplace more age-friendly.
Governments and companies need to understand the opportunities and limitations of the ageing worker and adapt their workplace to suit.
BMW has shown the real, positive effects that simple adjustments can make to optimize the productivity of older workers.
Another critical issue of the ageing workforce is the transfer of their massive knowledge bank to the next generation.