The fall in the percentage of population was attributed to weakness in the construction and the marine and offshore engineering sectors, the National Population and Talent Division said in its annual population report.
Non-residents consist of work permit holders, mid-skilled foreign employees, students, foreign domestic workers and other dependents, The Straits Times reported.
A large number of these economic migrants are from India, Bangladesh, as well as Southeast Asia and China.
This is the slowest rate of growth since 2003.
In 2016, it was 5.6 million. In contrast, the decade before 2017 saw total population grow by an average of 2.45 per cent per year.
Meanwhile, the citizen population continued to age, according to media reports.
The proportion of citizens aged 65 and above was 14.4 per cent in 2017, from 13.7 per cent a year ago.
This is markedly higher than 10 years ago, when this proportion was at 9.4 per cent. The median age of citizens rose from 41.0 to 41.3.
The 2016 figure remains higher than the average over the past decade of 32,200.
On the whole, the citizen population grew by 0.9 per cent to 3.44 million, due to citizen births and immigration, the report said.
The permanent resident population remained stable, at 527,000.
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