New Prime Minister Shigeru Ishiba will bring stability to Japan’s healthcare market, supporting steady growth in health expenditure and adoption of digital technologies. Challenges include an ageing population and rising demand for care.
Key View
- Japan’s election of new Prime Minister Shigeru Ishiba will support stability within the healthcare market and promote steady health expenditure growth over the 2023-2028 period.
- We expect Ishiba to support and accelerate Japan’s adoption of digital health technologies including artificial intelligence-driven tools and telemedicine.
- Japan’s ageing population will be a key challenge for Ishiba and any future leadership, as demand for care and health expenditure will continue to rise significantly.
Japan’s election of new Prime Minister (PM) Shigeru Ishiba will support stability within the healthcare market and promote steady health expenditure growth over the 2023-2028 period. Ishiba was elected president of the ruling Liberal Democratic Party (LDP) on September 27 2024, succeeding Fumio Kishida, who stepped down due to declining approval ratings. Ishiba defeated Economic Security Minister, Sanae Takaichi and seven other rivals. The new PM has called an early general election for October 27 2024, well ahead of the October 2025 deadline. Our Country Risk team believes that Ishiba is well-placed to maintain the LDP’s majority, although the party might lose a small number of seats to its main opposition, the Constitutional Democratic Party of Japan. With the LDP likely to maintain its majority, Japan’s healthcare market would benefit from continued political and policy stability. This stability will help to sustain recent trends within the sector, including steady growth in health expenditure and the increasing adoption of digital health technologies within the healthcare system.
Japan’s healthcare market is poised for a period of stability following the recent election of Shigeru Ishiba as Prime Minister. As a seasoned politician with a keen focus on domestic issues, Ishiba’s leadership is expected to bring continuity and sustainability to the nation’s healthcare policies. His administration is committed to ensuring that healthcare resources are allocated efficiently while maintaining high standards of care. This stability is highly anticipated by stakeholders in the healthcare sector, who have long sought consistent and coherent policies, particularly in light of the challenges posed by an ageing population.
The ageing population remains one of Japan’s most pressing concerns, with nearly 30% of its citizens aged 65 or older. This demographic shift demands innovative approaches to healthcare delivery that can accommodate an increase in chronic health conditions and the need for long-term care. Ishiba’s government is expected to invest in technological advancements such as telemedicine and AI-driven healthcare solutions, which can enhance accessibility and efficiency for older citizens.
Moreover, Ishiba’s tenure could bolster collaborative efforts between government bodies, healthcare providers, and private corporations to develop comprehensive strategies targeting age-related healthcare needs. Emphasizing preventive care and lifestyle changes may also become central themes in tackling the healthcare demands of an ageing population. With these initiatives, Japan’s healthcare market is anticipated to experience steady growth and development, ensuring quality care while addressing the unique challenges presented by the demographic transition.
Source : Japan’s Healthcare Market To See Stability Following Ishiba Election, Amid Ageing Population