As Singapore celebrates its 60th anniversary, the city-state is reflecting on its remarkable development since separating from Malaysia in 1965. With a population of just over six million people, Singapore has become one of the wealthiest countries per capita in the world, attracting workers from across the globe with its advanced economy and high standard of living.
The financial hub is renowned for its stability, forward-thinking approach, and centralized governance. However, as the country looks to the future, it faces several challenges that could impact its continued growth and success.
One of the most significant challenges facing Singapore is the threat of climate change. As a low-lying island, the country is particularly vulnerable to rising sea levels and increased rainfall, which could lead to flooding and extreme weather events. The government is preparing for the worst, with plans to build three artificial islands off the country’s east coast to act as a barrier against rising seas.
Benjamin Horton, former director of the Earth Observatory of Singapore, said the country could come to a standstill if catastrophic rain were to combine with a high tide. “If it flooded a lot of the infrastructure in Singapore, closing down MRTs, shutting down emergency routes, flooding a power station and the electricity went down – Singapore would be crippled,” Horton said.
Singapore’s population is ageing at a rapid rate, with almost one in four citizens expected to be aged 65 and above by 2030. This demographic shift will challenge the city-state over the next six decades, requiring more investment in the medical sector and potentially leading to labor shortages.
Chuan De Foo, a research fellow at the National University of Singapore’s Saw Swee Hock School of Public Health, said the resulting strain will not only test the resilience of healthcare institutions but also place significant emotional, physical, and financial pressure on family caregivers. “AI-driven tools are being developed to support mental wellbeing, detect early signs of clinical deterioration and assist in diagnosis and disease management,” Foo said.
Singaporeans are also having fewer babies, adding to the country’s demographic woes. The fertility rate fell below 1.0 for the first time in 2023 and shows little sign of increasing. Kalpana Vignehsa, a senior research fellow at the National University of Singapore’s Institute of Policy Studies think tank, said the government is “swimming against a cultural tide” in its efforts to reverse the decline in births. “Now is the time for expansive action to make parenting less expensive, less stressful, and most importantly, a highly valued and communally supported activity,” Vignehsa said.
Singapore’s neutral approach to foreign policy is being tested as relations between the world’s two biggest superpowers become increasingly strained. Alan Chong, senior fellow at the S Rajaratnam School of International Studies, said any pivot towards Washington or Beijing is likely to be subtle. “Almost all of Southeast Asia, including Singapore, tilted towards Beijing for economic support without announcing it,” Chong said.
Despite the challenges ahead, Singapore’s domestic political scene is set for more stability over the coming years. The ruling People’s Action Party (PAP) has been in power since the country was formed and shows no signs of losing control. In May’s election, the PAP won all but 10 seats in parliament with just over 65 percent of the vote.
Teo Kay Key, research fellow at the Institute of Policy Studies Social Lab, said younger Singaporeans will soon want a different style of politics, one that is more open and more participatory. “They are more likely to favour discussions and exchange of views,” she said. “There is also a growing trend where the preference is to conduct open discussions, with a more democratic exchange of ideas,” she added.