Nursing and Care Market Update: Japan & Singapore — May 23, 2026

Japan Care Market Trends

1. Managing care businesses amidst rising inflation According to Medical Saponet, Japanese care providers are navigating severe inflation by refining management strategies. There is a growing focus on oral function improvements to prevent frailty, with expert advice shared via on-demand member content. Updates on the 2026 nursing care fee revisions remain a priority for operators.

2. Increase in the "Active Working Pension" threshold Per the Japan Government Online portal, the income threshold for the "Active Working Pension" (在職老齢年金) system will rise to 650,000 yen per month starting April 2026. This reflects the trend of longer working lives, potentially increasing annual pension payouts for eligible seniors by roughly 300,000 yen.

3. 2026 Nursing care fee revisions announced PT·OT·ST Net reports that the mid-period nursing care fee revisions for 2026 have been officially posted. The Ministry of Health, Labour and Welfare has clarified operational rules for staff compensation additions, impacting physical, occupational, and speech therapists across the industry.

4. Structural limits of temporary fee revisions An analysis by the Institute for Social Vision Design (ISVD) suggests recent temporary revisions reveal underlying institutional strain. The report addresses broader welfare issues, including 2026 livelihood protection reforms, labor shortages, and pension sustainability.

5. Administrative error leads to refund demand in Nishinomiya According to the Yomiuri Shimbun, Nishinomiya City in Hyogo Prefecture identified an error in nursing care additions. Due to a misunderstanding of eligibility criteria, 35 providers applied a 15% rate instead of the 8.5% rate for 18 users, resulting in a collective refund demand of approximately 75 million yen.

1 sources

medical-saponet.mynavi.jp

medical-saponet.mynavi.jp

Singapore Care Market Trends

1. SingHealth receives WHO Healthy Ageing award As reported by The Manila Times on May 22, 2026, Singapore’s SingHealth was awarded the WHO's "His Highness Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah Prize" for health promotion. This international recognition solidifies Singapore’s position as a global leader in aging-related healthcare innovation.

2. AIC expands subsidies for home medical supplies The Agency for Integrated Care (AIC) expanded the Seniors' Mobility and Enabling Fund (SMF) list as of April 2026. Beneficiaries can now order subsidized items via the Vertis Health Marketplace.

3. Support for home care and respite services AIC continues to manage the Home Caregiving Grant (HCG) and respite care services. For those using the Integrated Home and Day Care (IHDC) service, the agency is facilitating smooth transitions for existing users enrolled before March 31, 2026.

4. Policy shifts for an aging population by 2030 NUS BizBeat notes that with one in four Singaporeans expected to be over 65 by 2030, housing options are evolving. Health Minister Ong Ye Kung announced a strategic adjustment in the pace of Community Care Apartment (CCA) launches, reflecting a diversifying housing market for seniors.

5. "Age Well Neighbourhood" initiative expands CNA reported that the government is adding Bedok, Bukit Panjang, and Tiong Bahru/Redhill to the "Age Well Neighbourhood" initiative. This program aims to create senior-friendly environments as Singapore enters "super-aged" status.

Policy and Market Implications

1. Strengthening home-based care: Differing approaches While both nations prioritize community-based care, Japan is utilizing regulatory insurance rate adjustments, whereas Singapore is leveraging subsidy platforms and market-friendly ecosystems like AIC.

2. International branding: Singapore’s strategic positioning SingHealth’s WHO award highlights Singapore’s strategy to become a hub for Asian aging solutions. While Japan focuses on domestic regulatory maintenance, Singapore is actively building a brand for medical and care exports.

3. Administrative and financial sustainability The refund incident in Nishinomiya and the ISVD’s analysis underscore the growing complexity of Japan’s care insurance system. Amid inflation and labor pressures, the need for simplified administration and sustainable funding remains a critical challenge for the future.