Singapore's Birth Rate Drops to Almost Half of Target, Lee Says

By Jean Chua

Aug. 17 (Bloomberg) -- Singapore's birth rate declined to 1.29, just more than half of the target needed for the population to replace itself, Prime Minister Lee Hsien Loong said today.

The city-state of 4.6 million people will be halved in one generation if the birth rate doesn't increase to 2.1, Lee, 56, said during his annual National Day Rally speech today.

``After a few generations, there will be no more to replace,'' Lee said in his speech delivered in Chinese. ``The gap is very wide.''

A decline in the island's birth rate may reduce the supply of younger and more productive workers and hurt economic growth, prompting the government to offer incentives such as cash bonuses to new parents. The city-state, a quarter the size of Rhode Island, has no natural resources and has said that it depends on its populace to generate economic growth.

Lee may announce new measures tomorrow night targeted at increasing the birth rate in the city-state. His speeches in Malay and Chinese were aired on local television tonight, and the speech in English, which will include the new measures, will be shown tomorrow to avoid a programming clash as the city seeks it first Olympic gold medal.

To contact the reporter on this story: Jean Chua in Singapore at jchua4@bloomberg.net.