Chpt 2: Consequences of an ageing population

3. Ageing population

Consequences = Impact of an ageing population on Singapore
Key question: Q1. “Reduction in economic competiveness [Given Factor] is the most serious outcome/impact /consequence of greying population.” How far do you agree? Explain.

Q2. “Straining on working population [GF1] is a more serious consequence than the strain on healthcare and social services service [GF2] for the elderly.”  How far do you agree? Explain.

Q3. The following are consequences of an ageing population for Singapore: Smaller security force
Strain on healthcare and social services service

Reduction in economic competiveness
Which of the following is the most serious? Explain your answer.

Answer for Q1:

Stand	I agree to a large/small extent.
Reduction in economic competiveness [P]	Insufficient young workers as population gets older/more people retire à local and foreign companies will not have enough manpower to hire à Foreign companies like the TNCs and local companies may leave Singapore à Cause unemployment in Singapore à recession à standard of living falls [EE]à hence reduction in economic competiveness is serious.[Link] If TNCs leave à local SMEs which depend on TNCs for business will close down à further unemployment à economic slowdown [EE]à standard of living falls à hence reduction in economic competiveness serious[Link]
Smaller security force[P]	Less young people able to serve in armed forces à older people are less physically fit to serve in the military à smaller defence force means less deterrence à enemies will NOT think twice to invade Singapore à lose our independence à will become subjects to the invader [EE] à hence having a smaller security force[P] is a serious consequence. [Link]
Strain on healthcare and social services service	More elderly à more people need medical attention à higher percentage of ill people in the country à more resources are needed for the elderly in HC and SS à more money channeled to these services à less funds available for other needs e.g. infrastructure, education, housing and defence à less resources in HC and SS for citizens in other age groups à medical and SS services will not be meeting the needs of the other segments of the population à hence serious.
Straining on working population	Strain on working pop: At the family level à fewer young people per family supporting more elderly family members[ medical cost could be high for the family since elderly fall ill more often] àfinancial strain on the working adults à family will also have other needs à insufficient money in the family. At national level à working people pay tax à tax needed to fund public expenditure à if pop is ageing à fewer working adults à fewer tax-payers à less tax collected à nation unable to fund its public projects e.g. recreational facilities , infrastructure , schools, hospitals à standard of living drops à quality of life drops à hence serious.
Weighing	Criteria: Root consequence Reduction in economic competitiveness is the most serious consequence à being economically competitive allows for full employment in Singapore + higher amount of income & corporate tax collected à govt and citizens will have the money to care for our elderly and meet other national needs including defence, healthcare and social services. There will also be less strain on the working population since amount tax collected is up.