The report analyses the fast-growing, yet fragmented South and Southeast Asia’s care economy, which constitutes a wide range of goods and services aimed at improving the well-being of care-dependent groups (elderly, children, people with disabilities) and prime working-age adults.

The authors identify five main factors hampering investor engagement, including a lack of a common understanding and investment language, deficient market segmentation, and limited business development support, among others. The report offers a framework based on market segmentation and alignment, common language for investing in care, connection between investors and businesses, business development support, and a catalytic capital-driven ecosystem approach to investment.

The authors provide recommendations to guide investors on how to catalyse investments into the care economy, including identifying an approach to investing in care, choosing entry points, and integrating care considerations into the investment process. Further, investors can focus on reducing unpaid care work, redistributing unpaid care work burden, and rewarding care work through formalisation and fair pay.

Additionally, investors and market builders can develop financing options that incentivise care by linking investments with care-related outcomes. Outcome-based financing, concessional resources, grants, and working capital loans can be provided in a more flexible and affordable way. With proper zoning and incentive mechanisms, investors can create a thriving and sustainable care economy landscape that not only benefits businesses and investors but also addresses critical social issues and promotes gender equality.