3 demographic hurdles Singapore must clear

Mr S Iswaran is troubled with the ageing workforce.

Here's an excerpt from the speech of Mr S Iswaran, Minister of Prime Minister's Office at the 5th MTI Economic Dialogue:

Let me now turn to a topical and pertinent issue of the day – the demographic shifts we will witness over the next 20 years, its economic implications, and the policy choices it entails.

We face three demographic trends in the medium term. First, our local workforce will shrink. As you would be aware, our Total Fertility Rate (TFR) has been below the replacement rate since 1976. Hence, the local workforce will begin to shrink in eight years’ time as our baby boomers retire and fewer young Singaporeans enter the workforce.

Second, our workforce will age. Between 2011 and 2030, the median age of Singaporeans in the workforce will rise from 39 years to 47 years. An older workforce brings with it experience and networks that companies must learn to make the most of. Equally, older workers will have to adapt to new technologies and sustain innovation, and the government and employers will need to help workers retrain and upgrade themselves.

Third, Singaporeans will be more highly educated in future. The government has announced plans to expand university places and, by 2020, 40 per cent of each cohort will enter university, up from 27 per cent today. While more Singaporeans will be able to realise their educational aspirations, we need to ensure that our economy and businesses continue to thrive and create correspondingly good jobs for them.