Silver linings: Unlocking the potential strengths in an ageing society

SINGAPORE’S population is ageing rapidly. It is the oldest nation in Asean and the fourth-oldest in Asean+3 (the Asean group plus China, Japan and South Korea), with more than 16 per cent of its population aged 65 and above. This demographic reality stems from a combination of a low fertility rate – among the lowest in the world – and an exceptionally high life expectancy. The growing elderly population could weigh on future growth and increase fiscal burden. This article explores how Singapore has addressed these challenges and what more can be done.

The proportion of Singapore’s working-age individuals has been shrinking since the early 1990s. Despite efforts to bolster the labour force through the recruitment of foreign talent, its decline is expected to continue. By 2050, the nation’s population pyramid will see a pronounced shift, with a much smaller working-age base supporting a significantly larger elderly population. The support ratio – the number of working-age individuals supporting each elderly person – is projected to drop from five to fewer than two. This would intensify the fiscal burden and weigh on economic growth, as the potential productivity gains of a smaller workforce may not fully offset the rising costs of supporting a growing elderly population.

Yet, Singapore has not been idle in addressing these demographic shifts. Its excellent healthcare system has contributed to not only a longer lifespan, but also healthier ageing. Initiatives such as the Healthier SG programme, launched in 2022, emphasise preventive care and community health management, while the Agency for Integrated Care has improved support for ageing populations. These efforts, alongside sustained investments in healthcare quality, are crucial in managing the demand for fiscal resources as the population ages.