Developing Asia's demography may not yield dividend

Subject

Demographic changes in South and South-east Asia.

Significance

Young people will dominate the demographics of South Asia and South-east Asia for decades to come. Yet in these regions, high-school enrolment is below 50%, large sections of the population still do not use the internet, and diseases particularly damaging for young people are endemic. These trends are unlikely to shift soon, making it harder for governments to absorb young workers into labour markets.

Impacts

• Large, young and growing populations of South and South-east Asia will increase the need for more and better infrastructure.
• This could increase the appeal of China’s infrastructure-heavy connectivity projects within its Belt and Road Initiative.
• Singapore and Thailand, with relatively older demographics and slowing population growth, could become niche markets for eldercare services.
• Rising urbanisation will increase demand for quality employment opportunities in cities.
• High-growth sectors, such as information technology and e-commerce, are likely to be particularly popular.