Japan and Singapore care market news — 2026-05-23

Japan Care Market Trends

1. Management strategies for care operators in an era of high inflation According to a column published by the industry publication Medical Saponet after May 21, 2026, services focusing on oral health to prevent frailty in the elderly are gaining attention. Key issues include how operators should adapt their management and staffing strategies to deal with high costs and the changes brought about by the 2026 revision of nursing care compensation (Kaigo Hoshu).

2. 2026 nursing care compensation mid-term revision announced The mid-term revision for the 2026 fiscal year has been notified, detailing calculation requirements and guidelines. According to the PT/OT/ST rehabilitation information site, the Ministry of Health, Labour and Welfare is providing guidance on new rules for improving the treatment of care staff, aiming to address structural limitations in the current system.

3. Raised threshold for "Working Old-Age Pension" boosts employment motivation As of April 2026, the threshold for the working old-age pension (Zaishoku Rorei Nenkin) has been increased to 650,000 yen. Following government public relations, this policy update supports the growing number of active seniors who wish to work longer as healthy life expectancy increases, potentially increasing annual pension payouts by 300,000 yen for some recipients.

4. Expert analysis on the limitations of temporary care revisions An analysis by the Institute for Social Value Design (ISVD) critiques the 2026 temporary revision of nursing care compensation, labeling it a "structural confession" where the government has bypassed its own institutional safeguards. The column highlights concerns regarding the long-term sustainability of care funding and the potential for the collapse of local government services.

5. Nishinomiya City, Hyogo Prefecture, demands return of 75 million yen As reported by the Yomiuri Shimbun (Kansai edition) on May 20, 2026, an administrative error occurred in Nishinomiya City regarding nursing care compensation additions for severe home care services. The city incorrectly applied a 15% rate instead of the required 8.5% for 18 patients, leading to a recall of approximately 75 million yen from 35 facilities.

6. 2024 White Paper on an Aging Society The Cabinet Office of Japan has released the 2024 White Paper, showing that physical fitness scores for adults aged 65–79 (including grip strength and flexibility) have improved compared to 2011. This suggests that healthy life expectancy and physical performance levels are genuinely rising.

1 sources

medical-saponet.mynavi.jp

medical-saponet.mynavi.jp

Singapore Care Market Trends

1. SingHealth wins WHO healthy aging award As reported by The Manila Times on May 22, 2026, Singapore’s largest public healthcare cluster, SingHealth, received the "HH Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah Prize for the Promotion of Healthy Ageing" from the World Health Organization. This award bolsters Singapore's reputation as a leader in elderly health and population wellness.

2. Expansion of Senior Mobility and Enabling Fund (SMF) According to the Agency for Integrated Care (AIC), the range of home healthcare items covered under the SMF was expanded in April 2026. Subsidy eligibility is determined by the 2025 Annual Value (AV), and items can be ordered online via the Vertis Health Marketplace.

3. Respite care services for caregivers The AIC continues to provide Respite Care Services for caregivers needing temporary support or relief. This is especially helpful for households employing Migrant Domestic Workers (MDW) when they are on leave or require unscheduled assistance.

4. Transition of Integrated Home and Day Care (IHDC) packages As of March 31, 2026, all users of the legacy IHDC package were required to complete their transition to the new center-based and home-based service models. This transition is part of Singapore’s ongoing reform of its integrated care system.

5. Home Caregiving Grant (HCG) 2026 criteria The AIC notes that for households without income, the 2025 Annual Value (AV) determines the 2026 HCG subsidy levels. Households can update their information via the MediShield Life website or through a social worker.

6. TPG establishes aged care medical group According to a March 2026 report by Bloomberg, alternative asset manager TPG has launched a group providing aged care services in Singapore and Malaysia, including 16 nursing homes and medical transport services. This highlights the growing role of private investment in meeting the demands of a rapidly aging population.

Policy and Market Implications

① Convergence: Accelerated reform due to aging Japan is focusing on staff welfare and structural sustainability through compensation revisions, while Singapore is accelerating its transition to community- and home-based care through expanded subsidies and service restructuring. Both nations are shifting away from institution-centric models.

② Divergence: Private investment approaches Singapore is actively attracting global private capital (like TPG) into the care market, whereas Japan maintains a model where the government-regulated public insurance system dictates market behavior and reform.

③ Takeaway: Shifting from "maintenance" to "active participation" Policies like Japan’s pension adjustments and Singapore’s WHO-recognized initiatives reflect a broader shift: viewing the elderly not merely as "care recipients," but as active contributors to society. This serves as a vital reference for the future of care in Asia.