Japan and Singapore Care Market Update — 2026-06-07

Japan Care and Nursing Market Trends

1. 2026 介護報酬 (Care Compensation) Reform Implemented in June The Japanese government implemented its 2026 care compensation reform on an interim basis in June. The core of this reform is the "処遇改善加算" (Treatment Improvement Add-on) for "居宅介護支援" (home-based care support), which aims to address labor shortages by increasing salaries for nursing staff.

2. Increase in "在職老齢年金" (Working Old-Age Pension) Threshold As of April 2026, the Japanese government raised the "在職老齢年金" (working old-age pension) threshold to 650,000 yen. This move is part of a policy to boost seniors' desire to work, responding to the rising number of elderly workers as average life expectancy and healthy life expectancy increase.

3. Private "老人ホーム" (Nursing Home) Platform Ranks 1st for 9 Consecutive Years The "min-kan no kaigo" platform operated by Courier Co., Ltd. has ranked first in the number of listed "老人ホーム" (nursing home) facilities for nine years in a row. It also achieved a "double first" by taking the top spot in the "口コミ掲載施設" (reviewed facilities) category.

4. MHLW Calls for 2026 "介護テクノロジー" (Nursing Technology) Productivity Projects On May 20, 2026, Japan's "厚生労働省" (Ministry of Health, Labour and Welfare) began accepting proposals for pilot projects involving "介護テクノロジー" (nursing technology) to improve productivity in care settings. This policy promotes operational efficiency through the adoption of new technology.

1 sources

carecom.jp

2026年の介護報酬改定は6月に臨時施行！改定内容と対策を解説 | ナースコールのケアコム

Singapore Care and Nursing Market Trends

1. Expansion of Mental Health Facilities and Shift to Social Care Singapore is currently expanding its long-term mental health service capacity. Plans include the opening of a new psychiatric nursing home in May 2026, a psychiatric rehabilitation home in July 2026, and additional facilities by 2029. This signals a strategic policy shift from facility-based care to social care.

2. Expansion of AIC's Home Personal Care (HPC+) and Financial Assistance Singapore's Agency for Integrated Care (AIC) offers various home care support programs, including Enhanced Home Personal Care (HPC+), the Home Caregiving Grant (HCG), and the Seniors' Mobility and Enabling Fund (SMF). As of 2026, subsidy levels are determined based on the 2025 Annual Value (estimated annual rental value).

3. Expansion of Respite Care Services The AIC operates Respite Care Services, which family caregivers can use when they need a break. These services provide temporary care solutions, particularly during periods such as the leave taken by Migrant Domestic Workers (MDW).

Policy and Market Implications

1. Shift Toward Improving Staff Treatment Japan's 2026 care compensation reform and enhanced "処遇改善加算," alongside Singapore's focus on expanding mental health facility capacity, reflect a shared goal of ensuring industry sustainability by improving working conditions for nursing staff. Both nations recognize labor shortages as a critical challenge amid rising care demand due to aging populations.

2. Structural Shift Toward Home and Social Care Singapore's AIC policies (HPC+, HCG, etc.) aim to transition away from facility-centric care toward home and social support. Japan’s move to strengthen "居宅介護支援" (home-based care support) follows this same trend of bolstering home care services.

3. Necessity of Technological and Institutional Innovation Japan's MHLW "介護テクノロジー" productivity project targets efficiency through technology, while Singapore’s integrated care information system (one-stop touchpoint) aims to improve service coordination. Both countries are seeking to boost the competitiveness of their care industries through digital transformation and institutional integration.