Consequences of a declining population

Consequences of a declining population

What are the consequences of declining population?

Consequences = Impact of a declining population on Singapore

Key questions:
Q1. “Being unable to attract and retain MNCs/TNCs [Given Factor] is a serious consequence a declining population.” Explain. [5m]

Q2. The following are consequences of a declining population for Singapore:
- Weak defence force
- Ageing population
Which of the following is the more serious impact? Explain your answer.[10m]

Stand	I agree to a large/small extent.
Being unable to attract and retain MNCs/TNCs [P]	Insufficient young workers as population gets smaller à foreign companies/TNCs will not have enough manpower to hire à TNCs will not want to set up operations in Singapore + existing TNCs may leave Singapore à fewer jobs à unemployment in Singapore rises àrecession à standard of living falls [EE]à hence being unable to attract and retain MNCs/TNCs serious.[Link] If unable to attract or retain TNCs 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]
Weaker security force[P]	Fewer young people available to serve in armed forces à this causes a smaller and weaker defence force à less deterrent à enemies will invade Singapore à lose our independence à citizens will become subjects to the invader [EE] à hence having a smaller security force[P] is a serious consequence. [Link]
Ageing population	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 Healthcare and Social Services à more money channeled to these services à less funds available for other needs e.g. infrastructure, education, housing and defence àless 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. Fewer taxes collected since there are fewer working adults à less money for national needs à e.g. education, infrastructure à standard of living and quality of life falls.  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.
Weighing	Criteria  Being unable to attract and retain TNCs is the most serious consequence of a declining population à leads to economically weaker country à unemployment in Singapore will rise and unable to collect enough tax à government and citizens will not have the money to care for an ageing population or meet our defence needs. With a smaller population, technology can help keep our defence force strong even with fewer soldiers and even with an ageing population, enough public funds can ensure that the ageing population can be cared for provided we have strong economic growth.