More Dominoes Are Falling: Singapore's Evolving Workforce Policies Amid Demographic Shifts

In my previous article, I discussed how Singapore’s ageing population and declining fertility rates have long been warning signs for the country. I also highlighted that SCDF’s move to hire foreign paramedics was likely the first domino to fall—a sign that these demographic trends are no longer theoretical but very real.

Now, another domino has fallen: The government has officially announced that foreign Work Permit and Work Pass holders will be allowed to work up to age 63 from 2025, up from the current limit of 60.

A Recap of the New Policy Shift

From 1 July 2025, foreign workers in sectors like Construction, Services, Process, and Marine Shipyard can:

• Apply for a Work Permit up to age 61

• Be employed until age 63

(Source: Ministry of Manpower)

Why This Matters: Decades in the Making

Singapore has known about these demographic challenges for decades.

• Fertility rates have been below replacement (2.1) since the 1970s, and are now at a staggering 0.95 in 2024

• Life expectancy continues to rise, meaning Singaporeans are living longer and will need more years of retirement income and eldercare; but will have fewer citizens to care for the old and to contribute to government revenues.

Despite this, policy action until now has been cautious, balancing economic needs with public sentiment.

The key difference with this latest policy shift is that the government is now taking decisive action to address these issues before they threaten to disrupt the economy and daily life.

The Inevitable Truth: If Fertility Rates Stay Low, Who Will Fill the Gap?

If birth rates do not reverse, Singapore’s population will inevitably have to be supplemented with new citizens and permanent residents to keep the country functioning.

Two Sides to the Debate: Protection vs. Pragmatism

Like all major policy shifts, this issue can be argued from both sides:

🔹 Protecting the Singapore Core:

• Some may argue this opens the door to foreigners taking jobs that should go to locals, especially when Singaporeans face job pressures themselves.

• It raises questions about identity, integration, and fairness, particularly for lower-income Singaporeans who may already feel squeezed.

🔹 Pragmatic and Necessary:

• On the other hand, this move can be seen as a proactive step to mitigate workforce shortages before they cripple essential services like healthcare, construction, and eldercare.

• Foreign workers help keep the economy running, and retaining experienced foreign workers beyond age 60 may also ensure better quality and continuity in labor-intensive sectors. And many may consider becoming new citizens in time.

The Bigger Picture: What Happens Next?

This policy shift, along with SCDF’s hiring of foreign paramedics, suggests we are entering a new phase of demographic reality where relying solely on local manpower is no longer viable.

If trends continue, we will have to answer tough questions:

• Are we prepared for a future where locally-born Singaporeans may form a minority?

• What kind of society and economy do we want to build in response to these demographic changes?

Final Thought: A Call for Honest, Data-Driven Dialogue

There are no easy answers, but the data is clear—Singapore is at a crossroads. The real debate is not whether to act, but how to act, and how fast.

Whether you view these changes as a necessary step to protect our future or a challenge to the Singaporean identity, one thing is certain: more dominoes will fall if we don’t confront these issues head-on.

It’s time for an honest, data-driven national conversation.

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