Experts explore solutions like automation and foreign workers to counter a shrinking labour force

Elon Musk has recently made headlines by asserting that Singapore is at risk of “going extinct” due to its persistently low birth rate and dwindling workforce. Musk’s statement came in response to a post on X discussing the nation’s demographic challenges and efforts to address its labour shortages with automation.

According to data from the Department of Statistics, Singapore’s resident total fertility rate hit a historic low of 0.97 births per female in 2023, representing a 6.7 per cent drop from the previous year’s 1.04. Musk also referenced South Korea’s struggles with a similar issue, noting that two-thirds of its population could vanish within a few generations.

Economist Song Seng Wun, an adviser at CGS International, echoed Musk’s concerns, stating: “He is not wrong… Academics have warned for years that if the ageing population issue remains unaddressed and delays in marriage and childbearing persist, there will be serious implications for the citizen population.”

In response to these demographic challenges, the Singaporean government has implemented measures such as increasing paternity leave, expanding childcare support, and ramping up the construction of HDB Build-To-Order flats.

Selena Ling, chief economist at OCBC, added context by highlighting that declining marriage rates and lower birth rates are global phenomena. She emphasised: “The larger question is whether we can rely on foreign talent and productivity gains to offset the shrinking workforce while supporting sustained economic growth.”

The debate continues to centre on strategies like immigration, technological advancements, and productivity improvements as potential solutions to combat these demographic trends. Musk’s commentary has reignited attention on the long-term implications of Singapore’s ageing population and declining fertility rate.