SINGAPOREANS are wealthier, healthier and better educated than ever before but the fast-ageing population and labor shortages pose long-term challenges, officials said Feb 20.

The Department of Statistics said literacy was "becoming universal" in multi-racial Singapore, with 93 percent of the population 15 years old and above clasified as literate in 2000, from 89 percent 10 years before.

Literacy in more than one language reached 56 percent and over half the non-student population had secondary education or better in 2000, while 98 percent of youths between seven and 16 years old were enrolled.

Almost a quarter of the work force was in managerial and professional positions in 2000, and the median monthly income of salary-earning households stood at S$3600 (US$2068).

More than 92 percent of Singapore's 3.1 million people now own their homes, thanks to a government housing program financed with mandatory pension contributions by workers and employers.

Minister of Trade and Industry George Yeo said in an address at the release of the data that amid the encouraging statistics, Singapore will have to address a graying population and limited supply of workers.

Yeo said the favorable demographic conditions of the past "would start to turn against us in 10 years' time" as the proportion of older people increases.

"Not only will we have an older workforce, we will also have to take care of a much larger elderly population," he said.

He said Singapore will have to compete for foreign talent and widen its market reach in a globalized economy.

"The immediate region has supported our growth in the past few decades. (Southeast Asia's) importance will remain, as this is our immediate neighborhood," he said.

"But the stimulus for future growth will have to come from a wider region and beyond. The world has become smaller," he said, citing the need for trading pacts with more distant markets.