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Section A

Question 1

Singapore’s population is ageing rapidly, with the proportion of citizens aged 65 and above increasing to 19.1 per cent in 2023. By 2030, around one in four citizens will be aged 65 and above.[1]

Healthcare will account for the bulk of increases in government social spending by 2030 as Singapore’s population ages. PM’s National Rally Speech in August 2023 stated that Singapore must be prepared to take better care of the elderly, including providing more medication subsidies to reduce the burden of healthcare costs on older Singaporeans and their families[1]. The 2022 “Population In Brief” report mentioned that Singapore must also be a home where seniors can age meaningfully with confidence and peace of mind. The report also cited Singapore’s efforts to help its citizens take charge of their health and achieve healthy longevity.[2]

In response to the multi-faceted challenges of a rapidly aging population, the Government launched Healthier SG – a national initiative by the Ministry of Health (MOH) that focuses on a preventive approach towards long term healthcare.[3] Singaporeans can take proactive steps to manage their health, prevent the onset of chronic diseases and have strong support to lead healthier lifestyles. The Minister for Health said that as of May 2024, there are 890,000 persons enrolled in this initiative that links individuals to their family doctors for health needs, provides all rounded support to lead healthier lifestyles and see better health outcomes, and to empower everyone to take charge of their health[4]. With an ecosystem of support for better health, individuals have access to more physical and health-promoting activities best suited for their needs. Seniors can also approach the Active Ageing Centres for health activities and programmes recommended by their regional health clusters and their family doctor.

Against this backdrop of aging population and elder care, you see a good opportunity to start a new business in the form of a gym that specifically targets seniors from 50 years and above. The typical gyms are frequented by the younger segment of the population, and you felt that there is an unaddressed market for seniors, who might feel intimidated by the presence of younger and fitter gym-goers. Furthermore, you also perceived that there must be appropriate level of support from the personal trainers and staff so that they could provide relevant advice and care to the seniors.

In addition, the other potential market segment that you could target are individuals who has recovered from ailments or surgery but require some level of rehabilitative exercise with some supervision.

Starting and operating a gym requires significant investment with good financial and business planning before commencement. As there is a certain level of initial capital investment required, you have identified and approached a potential investor, and he is agreeable to the business concept. He would be able to inject funds into the venture in a combination of equity capital and interest-bearing personal loan. You will need to prepare a business proposal, and a short presentation to the investor to formally seek funding and offer some equity in return.

Required:

You are to construct a business model canvas to analyse the opportunity for launching a gym for seniors.

In your report, you should appraise in detail each component of the business model canvas.

The report should also include a detailed financial analysis to demonstrate the financial viability of the venture.

References

 Teng, T. (2023, September 30). Record number of citizen marriages in 2022;
S’pore’s population ageing rapidly. The Straits Times. Record number of citizen
marriages in 2022; S’pore’s population ageing rapidly | The Straits Times
National Population and Talent Division, Strategy Group, Prime Minister’s Office, Singapore Department of Statistics, Ministry of Home Affairs, Immigration &Checkpoints Authority and Ministry of Manpower (2023). Population in Brief2023. https://www.strategygroup.gov.sg/files/mediacentre/publications/population-in-brief-2023.pdf
. Ministry of Health, Singapore (n.d.). What is Healthier SG? https://www.healthiersg.gov.sg/about/what-is-healthier-sg/
 Chin, S. F. (2024, May 18). Nearly 890,000 sign-ups so far for Healthier SG, more Malay participation needed: Ong Ye Kung. The Straits Times.
https://www.straitstimes.com/singapore/nearly-890000-sign-ups-so-far forhealthier-sg-more-malay-participation-needed-ong-ye-kung

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