Case 5DEMOGRAPHY IS DESTINY

Galeev RasilOmmi KalsomSafiah Fatihah Mohd HalimiSaif Ur Rahman KhalidSarah SopeeSuri Lestari Hikmawaty

INTRODUCTION• Demography: Study of the structure of

human populations

• Demographers often assert that demography is destiny.

• A traditional way of examining a country’s demography is through the use of populations of pyramids

• Graying populations: growing number of older people in population

Cont: Population Pyramids

According to the EU, the senior citizens market will grow by

81% from 2005 to 2030 while the 18-59 year old market will

only increase 7%.

According to the EU, the senior citizens market will grow by

81% from 2005 to 2030 while the 18-59 year old market will

only increase 7%.

• Cause of Declining:– Disease, Famine & Childbirth without

modern medicine.

• Impact of Demographic Changes:– Shift in Economic power and

Competitiveness– Rise in Old-Dependency Ratio

Studies predict that there will be fewer children and more old people in most

countries or decreasing in birth rates and increasing lifespan in the future.

Studies predict that there will be fewer children and more old people in most

countries or decreasing in birth rates and increasing lifespan in the future.

1.What challenges do graying populations create for companies?

Qs.1

• Declining Number Of Workers Per Retiree.• Reduce the number of children

• Shrinking Of Availability Of Labor

• Inflation Of Wages• higher demand of salary due to shrinking

of available labor

• Increase Burden On Current Workers• Fewer workers that must work in order to

support more retirees• Fewer workers will pay the taxes to support

public programs for older people• Fewer workers will produce the goods and

services that demanded by the entire population

• Decline in productivity• Age Discrimination in Employment Act of 1967

(ADEA) protects individuals who are 40 years of age or older from employment discrimination based on age

Qs.1

2. What opportunities do graying populations create for firm?

• Technology Advancement– To develop medicine – To help elderly do heavy work, robot. – Should be friendly user and high safety suits

them the most. – able to make their life easy such as the

portable voice amplifier straps onto the receiver of the handset.

• Demand for high quality of foods – i.g Malaysian product such as Power Root

beverages has a very high demand in Japan

Qs.2

• Real estate industry• provide the suitable houses that match the

financial budget of older people

• Consultant Company in financial plan • need to find assistant for succession planning.

• Tourism industry • especially in US, Japan• provide package that suitable for their age and

suitable activity not too vigorous and take for example advertising for cruise holidays

• E-commerce– targeting seniors via ads on the search engines

Qs.2

3. What can countries do to counteract the impact of these demographic changes on their economic competitiveness?

• Policies need to be developed – change retirement incentives so that people can

fulfill their expressed desires to work longer in response to expectations of greater longevity.

– More flexible old-age pension arrangements combined with increases in the official retirement age will encourage prolonged workforce participation.

• Increasing the importance of the private sector in providing pensions and health care. – Government can get control of federal health care

costs through the better use of technology and better management of chronic illnesses and disabilities.

Qs.3

• Legal and cultural efforts to discourage age discrimination by employers

• Encourage to increase labor force participation– Enact a Law against gender discrimination have helped

open up the workplace to women in many wealthy countries, middle and low income countries with aging populations would likely benefit from similar measures.

• Import foreign workers by offering benefits, incentive especially in critical profession which the countries must have in their economic growth. – I.g Both the UK and Germany have already announced

schemes to attract skilled immigrant workers.

Qs.3

• Harness the strength of an elderly workforce– through job creation and volunteerism,

this will allowed some of the anticipated economic impact of a growing pool of retirees could be lessen.

• Government may investment more in improving the health of those aged 60.– reduce the burden on health care and

social security systems.

Qs.3

~THANK YOU~