Three top challenges Singapore may face in the next decade
Q5
Singapore is a relatively young nation, where its rapid economic development has wowed many from all over the world, and has attracted much attention. The economic milestones it has reached, in addition to its uniqueness as a multiracial and cosmopolitan society, has put its name on the world map, albeit being a very small country of very short history. However, Singapore is experiencing, and will experience various challenges to come, especially in the next decade, in order to keep up with its progress as a competitive nation in terms of the quality of its manpower and its status in the world as one of the faster advancing economic hubs. As a country with limited natural resources, its only resource is that of human resource. The issues of ageing population, the influx of foreigners and decreasing competitiveness in its people are the greatest challenges Singapore will face in the next ten years that will put the advantages it has over other nations at stake.
Singapore has been experiencing a rapid decline in birth rates that has led to an ageing population. Currently, our total fertility rate is at a very low 1.2, which is far from the ideal replacement ratio of 2.1, in order to replace and support our elderly. Although the figure 2.1 as a replacement ratio is not a definite guideline but only valuable as a reference, nevertheless, our population is experiencing a strain to support our older generation, as well as sustaining our economic growth at the same time. Having an ageing population, the current workforce will have to bear heavier tax burden in order to provide for the elderly, such as building more elderly-friendly infrastructure, day care centers as well as the need to set aside funds for the elderly’s retirement. This will put a strain on individuals as well, as most people do not have large families, and will have to support their parents and even grandparents by themselves or with just another sibling, in addition to their daily expenses.
Singapore is a relatively young nation, where its rapid economic development has wowed many from all over the world, and has attracted much attention. The economic milestones it has reached, in addition to its uniqueness as a multiracial and cosmopolitan society, has put its name on the world map, albeit being a very small country of very short history. However, Singapore is experiencing, and will experience various challenges to come, especially in the next decade, in order to keep up with its progress as a competitive nation in terms of the quality of its manpower and its status in the world as one of the faster advancing economic hubs. As a country with limited natural resources, its only resource is that of human resource. The issues of ageing population, the influx of foreigners and decreasing competitiveness in its people are the greatest challenges Singapore will face in the next ten years that will put the advantages it has over other nations at stake.
Singapore has been experiencing a rapid decline in birth rates that has led to an ageing population. Currently, our total fertility rate is at a very low 1.2, which is far from the ideal replacement ratio of 2.1, in order to replace and support our elderly. Although the figure 2.1 as a replacement ratio is not a definite guideline but only valuable as a reference, nevertheless, our population is experiencing a strain to support our older generation, as well as sustaining our economic growth at the same time. Having an ageing population, the current workforce will have to bear heavier tax burden in order to provide for the elderly, such as building more elderly-friendly infrastructure, day care centers as well as the need to set aside funds for the elderly’s retirement. This will put a strain on individuals as well, as most people do not have large families, and will have to support their parents and even grandparents by themselves or with just another sibling, in addition to their daily expenses.