This is only true per square mile or square kilometer, but it's false generally (so I would say that the statement is false).
For example, Hong Kong and Macau have by far higher population density (with Macau said to have the biggest population density in the world) than mainland China, but Mainland China has a larger population.
Laws are necessary to keep society together . For example some protect our general safety, and ensure our rights as citizens against abuses by other people,by organizations and by the government itself. An example of one for our general safety are speed limits and traffic laws exist so that we drive in a safe manner.