Singapore Faces Demographic Shift: Population Decline Looms Without Immigration

Singapore is projected to experience a population decline within the next decade without immigration. This demographic change will impact the workforce, economic activity, and place a heavier tax burden on the working-age population. Experts underscore the rapid pace of change and its implications for society and the economy.

Singapore may face a significant population decline within the next 10 years if immigration policies are not adjusted, according to a recent media report. This demographic shift could have sweeping implications for the city-state's workforce and economic vitality.

Minister in the Prime Minister's Office, Indranee Rajah, highlighted in a parliamentary response that, based on current trends, citizen deaths could surpass births by the early 2030s. The Straits Times reported a 40% surge in citizen deaths from 2014 to 2023, while births fell by 13% over the same period.

Experts say the critical issue is the accelerating gap between deaths and births, which complicates societal and economic adaptations. The shrinking population will likely diminish the resident labor force, affecting domestic consumption sectors like food and retail. Additionally, an aging population could impose a heavier tax burden on working-age adults. As of June 2023, Singapore's population was 5.92 million, with significant growth in both the permanent resident and non-resident populations.

(With inputs from agencies.)