SEA Health Tech Investment Insights

INSEAD The growth is primarily driven by an ageing population and prevalence of non-communicable diseases 1 Ageing Population Age CAGR 2015 - 2040 (%) 2 Prevalence of Non-Communicable Diseases Prevalence Of Smoking (2015), Overweight (2016), And Obesity (2016), (%) 00-14 15-64 1.4% 0.8% 0.4% 0.4% -0.4% -0.3% -0.2% 0.0% -0.7% -1.2% 65 and above 4.4% 4.0% 3.6% 3.7% 2.0% Smoking 39.9% Overweight 31.6% 25.7% 23.6% 24.4% 21.2% 22.3% 20.4% Obesity 9.2% 5.7% 3.5% 4.7% ■Indonesia ■ Vietnam ■Thailand ■Philippines OECD Nearly all 6 ASEAN nations show either negative or close-to-zero growth for the youngest part of their population (age years 0-14). While the workforce age part of the population (age years 15-64) in most nations is still slowly growing, the retirement age population (age group 65-above) is outpacing them rapidly, with relative growth rates 3- 10 times higher than the working age population. In SEA, 9.6% of the total population was 60 and above in 2016 but is expected to more than double to 21.1% by 2050, driven by the increased life expectancy of elders and reduced fertility rates of an increasingly wealthy population. ■Indonesia ■ Vietnam ■Thailand ■Philippines Overweight and obesity (metabolic risk indicators) as well as smoking (typical risk behaviors) are highly prevalent in SEA and continue to increase. This will translate into a high prevalence of severe non-communicable diseases in the future. This trend will compound the effects of the increased population age in the ASEAN 6 nations. Sources: World Health Organization, United Nations, OECD, Ministry of Health of respective countries, Solidiance Analysis ("The ~USD 320 Billion Healthcare Challenge in ASEAN") 10

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