Singapore Population Analysis

Population growth of a country can be calculated by calculating the difference between the sum of birthrate and immigration with the sum of death rate and emigration. It is the rate of increase of population with respect to time. World population increase exponentially instead of constantly. For example the number increase from (1, 2, 4, 8, 16…..) instead of (1, 2, 3, 4, 5…..). Exponential population growth rate is a major world issue in the long run. This is because we will use up natural resources much faster and we eventually have to find alternatives or else earth will become inhabitable. Not forgetting to mention the clearing of forest for land and the increase of factory due to the increase in demand. Despite the disadvantages exponential

The first theory is that the population growth is directly proportional to the economic growth. Second theory being population growth has no effect on the economic growth and lastly population growth is inversely proportional to the economic growth. For Singapore, the first theory is true. Since independence, Singapore population has increased by 3.5 million and the Gross Domestic Product (GDP) per capita increased from 516 USD in 1965 to 56,286 USD in 2014.

For a small and developing country like Singapore in the early stage, population growth is important. The increase in population growth in a country would increase demand for goods and services in the country. This creates a market for foreign investors to invest in the country, bringing wealth and boosting the economy. As standard of living is closely related to the wealth of each individual and the wealth of the country, when the country is evolving at a fast pace, the standard of living gets better in that

Hong Kong’s GDP was 680 USD in 1965 and went all the way to 40,000 USD just slightly below Singapore’s. In fact the GDP growth of both country was nearly identical all the way up to 2003, where Singapore’s GDP had a faster growth rate after. Just like Singapore, Hong Kong was located in a strategic location. After 1978, Hong Kong began actively engaged in international trading and investment which helps to kick-start the economy growth. From 1997 onwards, service sectors bloomed and service sector employment rate increased from 52% to 80%. The increase of population in Hong Kong helped to manage more service from overseas and attracted even more foreign investors. Today, Hong Kong and Singapore’s service industry is world class which also one of the factor of our positive economic growth.

However Hong Kong faces the same problem Singapore face in the near future, aging population. According to South China Morning Post, Hong Kong’s average age will be 56.3 years old and Singapore’s average age of 50.3 by 2040. (South China Morning Post, 2015). If the set of estimates are true, the economy is set to be harmed. Productivity will decrease with age, lesser people will be contributing to the society and the economic growth will be