Striking the balance: Managing population challenges and foreign labour

SINGAPORE’S population reached a record high of 6.04 million in mid-2024, and this growth presents both opportunities and challenges. According to the latest Population in Brief report jointly released by the National Population and Talent Division of the Prime Minister’s Office and the Department of Statistics, the rise in non-residents, particularly unskilled or semi-skilled migrant workers, has been essential in sustaining key sectors such as construction and healthcare while the trends of an ageing population, later marriages, and falling birth rates persist.

From these demographic trends, three key questions arise. First, what defines an optimal population size? Second, how does the ratio of residents to non-residents influence this optimal size? Finally, in what ways do foreign workers complement or compete with the local workforce, and how might this affect marriage and fertility rates among citizens?

Considerations in deriving the optimal population size

Scholars such as Roberts (1971) and Hardin (1971) suggest that the optimal population size is achieved when demographic and economic equilibrium is balanced. Neither maximum population size nor the gross national product should be the goal.