Over the past decade, government spending more than doubled from $33 billion to $71 billion - and is set to increase further. Ahead of Budget Day on Feb 19, Insight looks at where spending demands are greatest: healthcare, infrastructure and jobs. The first of a three-part series, this week's feature examines Singapore's social policies, and pressing issues in healthcare.
By Seow Bei Yi, The Sunday Times, 28 Jan 2018
Shaping policy in response to social needs is an ever-challenging - and changing - process. Just ask Deputy Prime Minister Tharman Shanmugaratnam.
Back in the mid-1990s when the Internet age was starting, many families were worried that their children would lose out because they could not afford computers.
The Government's solution: it would "socialise" computer use.
Public computers would be installed in schools and community centres, announced the Education Ministry's deputy secretary (policy) - Mr Tharman. There would be no subsidies for low-income families, he said then.
But as the Internet took off, this stance later changed. Government initiatives expanded to include subsidies for needy students to buy new computers and to subscribe to Internet broadband.
By Seow Bei Yi, The Sunday Times, 28 Jan 2018
Shaping policy in response to social needs is an ever-challenging - and changing - process. Just ask Deputy Prime Minister Tharman Shanmugaratnam.
Back in the mid-1990s when the Internet age was starting, many families were worried that their children would lose out because they could not afford computers.
The Government's solution: it would "socialise" computer use.
Public computers would be installed in schools and community centres, announced the Education Ministry's deputy secretary (policy) - Mr Tharman. There would be no subsidies for low-income families, he said then.
But as the Internet took off, this stance later changed. Government initiatives expanded to include subsidies for needy students to buy new computers and to subscribe to Internet broadband.
This flexibility to adapt to changing needs can be seen nowadays in the move to increase social spending for an inclusive society that gives the needy a leg-up. It stands in contrast to earlier years of nation-building, where the emphasis in social policy was self-reliance.
In an interview with Insight, Mr Tharman, who has been the Coordinating Minister for Economic and Social Policies since 2015, says:
"It's in the last decade that you see a decisive shift, a deliberate tilt, towards tempering the inequalities of life and ensuring the lower-income group keeps pace with the whole society as it moves up."
He outlines some of the key milestones: Workfare in 2007, which supports older low-wage Singaporeans who continue working and training; the Progressive Wage Model in 2012, which sets wage floors for workers' skill levels; SkillsFuture in 2015, which encourages lifelong learning; and MediShield Life, also in 2015, a health insurance plan helping to pay for costly hospital bills and treatments.
With such moves, social expenditure - which covers healthcare, education and social and family development, among others - ballooned to about $34 billion in 2016, from $12.7 billion a decade earlier. Last year, it comprised $37.8 billion - half of total government spending.
Experts agree there has been a shift to the left in Singapore's social policies - in terms of wealth redistribution - although they disagree as to the extent.
In the past, social support tended towards short-term aid for the unemployed, the ill, those with disabilities and the needy old, says National University of Singapore (NUS) economist Chia Ngee Choon, noting: "There was an aversion towards welfarism as it was feared that this may lead to a 'crutch mentality'."
But there was a growing acknowledgement that not everyone was benefiting from Singapore's economic growth. Some were falling way behind.
The 2005 Household Expenditure Survey showed that while average income for households rose 1.1 per cent annually from 1998 to 2003, those in the bottom 20 per cent saw their incomes fall 3.2 per cent a year in the same period.
By contrast, the Household Expenditure Survey in 2014 found that the income of those in the bottom 20 per cent rose at the highest rate of 6.6 per cent annually from 2008 to 2013, even as average monthly household income increased by 5.3 per cent annually.