Singapore in brief

This tiny island near the equator with a population of 4.68 million people, the fourth most densely populated country in the world, is currently enjoying high economic growth. Its land area - presently 704 square kilometres - is constantly changing due to land reclamation works and urban renewal. Behind the necessary modernization lies Singaporeans' tenacity in blending their traditions with new influences, and coming together in their shared identity as Singaporeans.

The success and prosperity that Singapore enjoys today has been the product of overcoming countless economic, social and political challenges. As the country ventures into the twenty-first century, new challenges of all sorts lie ahead. First is demographic change. The composition of Singaporean soceity will undergo a major transformation by 2018. Its demographic make-up will be affected by current phenomena, such as declining fertility rates, migration and a rapidly ageing population. Singapore faces a declining fertility rate: the number of babies born has dropped significantly from 52,957 in 1988 to 47,333 in 1977 and about 36,000 in 2007. Many talented citizens are leaving Singapore for other countries such as Australia, while at the same time the number of foreigners taking up Singaporean residency and citizenship has increased substantially. Singapore also has a rapidly ageing population: by 2030, 18 per cent of the population will be aged 65 years and above.

Economic challenges for Singapore abound. As a resource-poor nation, it has no option but to invest in its only resource-people. It must continue to attract foreign investors who have increasingly diversified to cheap-labour countries such as China and Vietnam. Spreading its economic wings beyond the region, for example, to the Middle East, India and Europe, has been a major strategy for the country to sustain its economic growth. At the same time, the problems of a widening income gap and the uneven distribution of wealth within the country as a consequence of globalization need to be addressed.

Political challenges - defined as internal and external tests or threats that concern the government or the system of government - cannot be ignored either. First is the issue of political leadership renewal. The Singapore elite has often complained that the lack of political talents and the vacuum generated by senior and more experienced politicians leaving the scene, if not filled, could lead to a succession crisis. Second are the demands of the younger generation for more space for political expression. The government realizes that it cannot afford to rule with an iron fist when the population is rapidly becoming more educated and when globalization is knocking at the door. Loosening control over the mass media and the opening of alternate media, such as the Internet, will test the government's commitment to political pluralism.

(ref: southeast asia in a new era by Ho Khai Leong)