Impact of Singapore’s ageing population on the macroeconomy.
This paper discusses the macroeconomic implications of a rapid ageing population in Singapore. Not only is the rapidly graying population expected to decrease savings and investments, it is also expected to increase government expenditure. In addition, the shrinkage of labour supply implies lower ta...
| Main Authors: | , |
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| Other Authors: | |
| Format: | Final Year Project (FYP) |
| Language: | English |
| Published: |
2010
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| Subjects: | |
| Online Access: | http://hdl.handle.net/10356/35469 |
| _version_ | 1824454075397177344 |
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| author | Park, Sun Jung. Tan, Yi Jun. |
| author2 | Tan Kim Heng |
| author_facet | Tan Kim Heng Park, Sun Jung. Tan, Yi Jun. |
| author_sort | Park, Sun Jung. |
| collection | NTU |
| description | This paper discusses the macroeconomic implications of a rapid ageing population in Singapore. Not only is the rapidly graying population expected to decrease savings and investments, it is also expected to increase government expenditure. In addition, the shrinkage of labour supply implies lower tax revenue, resulting in possible government debt. An ageing population has severe implications on labour productivity which could in turn affect the competitiveness of the economy. Furthermore, the reduction in mandatory savings also makes exchange rate management difficult in Singapore. This is because the savings in the Central Provident Fund and budget surplus accrued over the years allow the Monetary Authority of Singapore to control the nation’s inflation through re-injection of liquidity into the economy. Therefore, the authority might lose an effective inflation management tool. Our findings show that an ageing population will also affect the current account due to the fall in savings. It is thus vital for the government to determine how an ageing population will affect the economy and make appropriate plans for these upcoming challenges. Finally, we suggest several ways that the government could consider to help alleviate the problem of ageing on the macroeconomy. |
| first_indexed | 2025-02-19T03:16:33Z |
| format | Final Year Project (FYP) |
| id | ntu-10356/35469 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2025-02-19T03:16:33Z |
| publishDate | 2010 |
| record_format | dspace |
| spelling | ntu-10356/354692019-12-10T14:26:44Z Impact of Singapore’s ageing population on the macroeconomy. Park, Sun Jung. Tan, Yi Jun. Tan Kim Heng School of Humanities and Social Sciences DRNTU::Social sciences::Economic theory::Macroeconomics DRNTU::Social sciences::Economic development::Singapore This paper discusses the macroeconomic implications of a rapid ageing population in Singapore. Not only is the rapidly graying population expected to decrease savings and investments, it is also expected to increase government expenditure. In addition, the shrinkage of labour supply implies lower tax revenue, resulting in possible government debt. An ageing population has severe implications on labour productivity which could in turn affect the competitiveness of the economy. Furthermore, the reduction in mandatory savings also makes exchange rate management difficult in Singapore. This is because the savings in the Central Provident Fund and budget surplus accrued over the years allow the Monetary Authority of Singapore to control the nation’s inflation through re-injection of liquidity into the economy. Therefore, the authority might lose an effective inflation management tool. Our findings show that an ageing population will also affect the current account due to the fall in savings. It is thus vital for the government to determine how an ageing population will affect the economy and make appropriate plans for these upcoming challenges. Finally, we suggest several ways that the government could consider to help alleviate the problem of ageing on the macroeconomy. Bachelor of Arts 2010-04-19T04:28:44Z 2010-04-19T04:28:44Z 2010 2010 Final Year Project (FYP) http://hdl.handle.net/10356/35469 en Nanyang Technological University 45 p. application/pdf |
| spellingShingle | DRNTU::Social sciences::Economic theory::Macroeconomics DRNTU::Social sciences::Economic development::Singapore Park, Sun Jung. Tan, Yi Jun. Impact of Singapore’s ageing population on the macroeconomy. |
| title | Impact of Singapore’s ageing population on the macroeconomy. |
| title_full | Impact of Singapore’s ageing population on the macroeconomy. |
| title_fullStr | Impact of Singapore’s ageing population on the macroeconomy. |
| title_full_unstemmed | Impact of Singapore’s ageing population on the macroeconomy. |
| title_short | Impact of Singapore’s ageing population on the macroeconomy. |
| title_sort | impact of singapore s ageing population on the macroeconomy |
| topic | DRNTU::Social sciences::Economic theory::Macroeconomics DRNTU::Social sciences::Economic development::Singapore |
| url | http://hdl.handle.net/10356/35469 |
| work_keys_str_mv | AT parksunjung impactofsingaporesageingpopulationonthemacroeconomy AT tanyijun impactofsingaporesageingpopulationonthemacroeconomy |