"We will need to optimize land use ... whether it is through reclamation, building upwards, or using subterranean space. We will also need to invest in the necessary infrastructure, such as roads and rail networks, and power and utilities to meet future needs," Minister of National Development Mah Bow Tan told Parliament.

Mah said the Southeast Asian city-state's projected population increase to 6.5 million people from the current 4.5 million was based on current demographic trends.

"Singapore does not target a specific population number or a population growth. What we are looking for is a viable and self-sustaining population profile - one which helps us to grow a bigger economic pie, and a livelier and more vibrant society," he said.

Faced with a declining birth rate, Singapore has embarked on an aggressive drive to increase its population, including incentives for local married couples to have more children and plans to encourage immigration by easing regulations. Last year, the Department of Statistics reported that the birth rate had fallen to a record low of 1.24 children per female - the 28th consecutive year it has dropped below the "replacement rate" needed to maintain the population.

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