Taiwan's Long-term Care Industry Attracts Domestic, Foreign Investors

Taipei, June 22, 2011 (CENS)--Foreseeing the promising market for long-term care service to the elders in Taiwan, some enterprises at home and abroad are quite interested in joining the sector.

For instance, Uchiyama Group, a Japanese enterprise, intends to cooperate with a Taiwanese biotech firm to jointly explore the long-term care market in Taiwan. The group was established in 1998 and operates a variety of businesses in Japan, including property development, Karaoke restaurants, izakayas (Japanese pub) as well as long-term care.

Kenzo Uchiyama, president of the group, indicated that Uchiyama is now running 40 elderly-care homes in Japan with a total of 3,500 beds, generating annual revenues of 8.5 billion Japanese yen or US$106.25 million. The group intends to expand its elderly-care business by adding 1,000 beds this year and may set up its first overseas long-term care foothold in Taiwan soon.

In 2006, every 7.2 persons in Taiwan should take care of an elderly people, which is estimated to decline sharply to 3.3 persons in 2026. It is reported that people aged over 65 is expected to account for 14% of Taiwan's total population in 2017 and the percentage is forecast to jump to 20% in 2025.

To meet the growing demand for elderly care, the government here will appropriate a four-year budget of NT$86.4 billion (US$2.88 billion) for the health-care and elderly-care sector. In Taiwan the long-term care industry is estimated to generate production value of NT$104.2 billion (US$3.47 billion) in 2012, which may soar to more than NT$200 billion (US$6.67 billion) if including general health care.

Chunghwa Biomedical Technology Co., an active biotech firm in Taiwan, has recently cooperated with Home Instead Senior Care to jointly tap the long-term care market here. The latter is an America-based multinational network of franchises specializing in non-medical in-home care for the elderly.

Yung Shin Pharmaceutical Ind. Co., a leading pharmaceutical firm in Taiwan, also plans to actively invest in long-term care business; and Appearance Beauty & Health (ABH), a joint venture among Excelsior Healthcare Group, Lung Yen Life Service and the CID Group, anticipates to raising funds of US$16 million for future expansion.

Proportion of Population Aged Over 65 Among Asian Economies
Economies	Year reaching the percentage
	7%	10%	14%	20%	30%
Taiwan	1993	2005	2017	2025	2040
Singapore	2000	2010	2016	2023	2034
South Korea	2000	2007	2017	2026	2040
Japan	1970	1985	1994	2005	2024