Social mobility remains the key, but Govt and community must take responsibility for all
By Lim Yan Liang, The Straits Times, 8 Jul 2020
Singapore can emerge from the COVID-19 crisis as a better and more inclusive society, which allows everyone to move up an escalator of rising skills and wages to better lives, said Senior Minister Tharman Shanmugaratnam.
To do so, the Government would have to play a key role, making deeper interventions earlier, to help level up children from less fortunate families from an earlier stage in their lives.
There would also be more help for workers to boost their productivity so that they continue to see their skills and wages move up over the years, said the Coordinating Minister for Social Policies.
While government policies are important, Singapore should retain a social ethos where people take pride in standing on their own feet, while also taking responsibility for one another, he said.
In a speech on strategies for an inclusive society and social mobility, live-streamed on the People's Action Party's Facebook page yesterday, he outlined Singapore's particular approach towards tackling inequality and ensuring security through every stage of life - from early childhood to working life to the retirement years.
"The aim of all our strategies, economic and social, is to have a more fair and just society, where young people have hope, regardless of what social backgrounds they come from... where everyone can advance in their careers regardless of what qualifications they start with, and where our seniors can look forward to living life fully in retirement, and living life with a sense of security," said Mr Tharman.
Stressing that the COVID-19 outbreak had made this a more important issue, since it was "fracturing societies", he said this goal could be achieved only through programmes that could be sustained across generations.
"This is about real programmes - real programmes that we keep improving, learning over time what works. Never perfect, but constant improvement."
Since social mobility is key to Singapore's fabric, and most inequalities kick in when children are very young, the Government is levelling the playing field with plans to double expenditure in the pre-school sector over the next few years, said Mr Tharman.
It is also preventing a digital divide by ensuring that every child, no matter how poor, has access to broadband Internet and a laptop or computer at home. "We are achieving real progress, but there's a lot more to do," he added.
For those in working life, Mr Tharman highlighted another Singaporean approach that has stood it in good stead: "a massive infusion of skills at every stage of one's career".
Singapore has also managed to keep unemployment numbers much lower than those in other developed countries even during the COVID-19 crisis. The wages of its average worker have risen by a third over the past decade. The wages of low-income workers have risen by even more.
"Fundamentally, because we have raised productivity," said Mr Tharman.
Finally, he touched on the issue of security for seniors.
Mr Tharman said that in every election, there will be politicians who make "very nice-sounding promises" on what should be done to help seniors, including for Central Provident Fund payouts to start earlier or for the Government to pay more of Singaporeans' healthcare costs, such as by subsidising MediShield premiums.
But many of these measures will only end up hurting the very people they are trying to help, he added, resulting in higher tax rates for middle-income households, because nothing comes for free.
"Some promises look appealing, but they actually lead to greater inequality over time," he said. "Think hard about the need for a fair system, a progressive system, and a sustainable system. And that's basically what we're trying to achieve in Singapore."
People have to play their part, too, he said. Singapore could emerge from the COVID-19 pandemic a more inclusive society if everyone finds a way to help others, whether they are the elderly, the less privileged or the less educated.
He urged the younger generation to be more involved in their neighbourhoods and in society, and take part in the Singapore Together movement, which Deputy Prime Minister Heng Swee Keat launched last year for citizens to actively help shape policies.
"For our younger generation, in particular, this is actually a challenge for a generation: building an inclusive society, that doesn't just mimic efforts in other societies, but does it our way - does it in a way that doesn't impose a heavy burden on Singaporeans at large," he said.
"It's not about the Government; it's about Singapore Together. Find your niche, find your passion, the areas you want to work in. And let's help spiral up our whole system, our whole society," he urged.
"It can be done. We can emerge from COVID not more divided, but with a more cohesive society."
By Lim Yan Liang, The Straits Times, 8 Jul 2020
To do so, the Government would have to play a key role, making deeper interventions earlier, to help level up children from less fortunate families from an earlier stage in their lives.
There would also be more help for workers to boost their productivity so that they continue to see their skills and wages move up over the years, said the Coordinating Minister for Social Policies.
While government policies are important, Singapore should retain a social ethos where people take pride in standing on their own feet, while also taking responsibility for one another, he said.
In a speech on strategies for an inclusive society and social mobility, live-streamed on the People's Action Party's Facebook page yesterday, he outlined Singapore's particular approach towards tackling inequality and ensuring security through every stage of life - from early childhood to working life to the retirement years.
"The aim of all our strategies, economic and social, is to have a more fair and just society, where young people have hope, regardless of what social backgrounds they come from... where everyone can advance in their careers regardless of what qualifications they start with, and where our seniors can look forward to living life fully in retirement, and living life with a sense of security," said Mr Tharman.
Stressing that the COVID-19 outbreak had made this a more important issue, since it was "fracturing societies", he said this goal could be achieved only through programmes that could be sustained across generations.
"This is about real programmes - real programmes that we keep improving, learning over time what works. Never perfect, but constant improvement."
Since social mobility is key to Singapore's fabric, and most inequalities kick in when children are very young, the Government is levelling the playing field with plans to double expenditure in the pre-school sector over the next few years, said Mr Tharman.
It is also preventing a digital divide by ensuring that every child, no matter how poor, has access to broadband Internet and a laptop or computer at home. "We are achieving real progress, but there's a lot more to do," he added.
For those in working life, Mr Tharman highlighted another Singaporean approach that has stood it in good stead: "a massive infusion of skills at every stage of one's career".
Singapore has also managed to keep unemployment numbers much lower than those in other developed countries even during the COVID-19 crisis. The wages of its average worker have risen by a third over the past decade. The wages of low-income workers have risen by even more.
"Fundamentally, because we have raised productivity," said Mr Tharman.
Finally, he touched on the issue of security for seniors.
Mr Tharman said that in every election, there will be politicians who make "very nice-sounding promises" on what should be done to help seniors, including for Central Provident Fund payouts to start earlier or for the Government to pay more of Singaporeans' healthcare costs, such as by subsidising MediShield premiums.
But many of these measures will only end up hurting the very people they are trying to help, he added, resulting in higher tax rates for middle-income households, because nothing comes for free.
"Some promises look appealing, but they actually lead to greater inequality over time," he said. "Think hard about the need for a fair system, a progressive system, and a sustainable system. And that's basically what we're trying to achieve in Singapore."
People have to play their part, too, he said. Singapore could emerge from the COVID-19 pandemic a more inclusive society if everyone finds a way to help others, whether they are the elderly, the less privileged or the less educated.
He urged the younger generation to be more involved in their neighbourhoods and in society, and take part in the Singapore Together movement, which Deputy Prime Minister Heng Swee Keat launched last year for citizens to actively help shape policies.
"For our younger generation, in particular, this is actually a challenge for a generation: building an inclusive society, that doesn't just mimic efforts in other societies, but does it our way - does it in a way that doesn't impose a heavy burden on Singaporeans at large," he said.
"It's not about the Government; it's about Singapore Together. Find your niche, find your passion, the areas you want to work in. And let's help spiral up our whole system, our whole society," he urged.
"It can be done. We can emerge from COVID not more divided, but with a more cohesive society."
Singapore GE2020: Ensuring social mobility starts from childhood, says Tharman
Deep interventions in the early years critical to spur kids from all walks of life to do well
By Hariz Baharudin, The Straits Times, 8 Jul 2020
Most of life's inequalities can be traced back to people's childhood and that is why the Government's efforts on social mobility start when Singaporeans are young, said Senior Minister Tharman Shanmugaratnam yesterday.
Deep interventions are critical in the early years to spur children from all walks of life to do well in school, he added.
"We are determined to make every effort to help kids who start off with low-income families to have hope in life, to have confidence, and to enter primary school brimming with enthusiasm.
"It can be done," said Mr Tharman, who is also the Coordinating Minister for Social Policies, during the People's Action Party's (PAP) talk show series on Facebook called Straight Talk.
One way the Government has been doing this is by raising the quality of pre-school education, he added, pointing out that it is doubling its expenditure in the next few years.
He also said that in five years, 80 per cent of pre-school education will be supported by the Government, up from 30 per cent eight years ago. Last year, the Early Childhood Development Agency announced that annual spending by the Government on the early childhood sector will double to more than $2 billion in the next few years. This is up from the $1 billion spent in 2018.
Another move to lift standards in the pre-school sector is teacher training, Mr Tharman said, noting that the National Institute of Early Childhood Development has been started to do this.
Beyond these efforts, targeted help for children is available too, he added. He held up the KidStart programme that provides advice and support to families on aspects of bringing up children, such as nutrition and parent-child interaction. It was introduced in 2016. About 5,000 children are set to go through it in the next few years, he said.
Still, more will be done for children who are further behind in their studies, even as such students in Singapore are already allocated the smallest of class sizes and the highest expenditure.
"We're hiring more teachers, more teacher counsellors, more professionals of other types to be in our schools to strengthen the whole school team to help every student in need," he stressed.
Mr Tharman said Singapore has one of the best school systems in the world and the country ends up at the top of the tables for subjects such as reading and mathematics. But it is not just its averages that are high, he added. "Our children from lower-income backgrounds substantially outperform children from lower-income backgrounds in the advanced countries," he said.
In fact, they do better than even the average child in countries such as Switzerland, France, Germany and Sweden, he added.
Work has also gone into preventing a digital divide in Singapore, said the Senior Minister, noting that no matter how poor a family is, every child will have broadband Internet to use at home, which will cost as little as $6 per month. Each child will also have a computer at home, and if the children are on the Education Ministry's financial aid scheme, they will not have to pay for one.
Yesterday, Mr Tharman also pointed out that divisions between children are being reduced by the Government, citing how primary school streaming was abolished more than 10 years ago.
In the same vein, secondary schools are moving away from streaming and towards full subject-based banding. The move does not just help students discover their strengths in specific subjects, but also serves a social aim.
"It enables students to mix more with each other and to interact more with each other as they grow up, and never think that 'I'm stronger than someone else', or 'I'm weaker than someone else'," he said.
Singapore, he added, has more to do to reduce life's inequalities experienced by children, and this requires working with families and professionals to give all children a chance to not be left behind.
"It just means we need deeper interventions, deeper partnerships on the ground with social service professionals, deeper partnerships with families to help unshackle them from their challenges," he said.
Deep interventions in the early years critical to spur kids from all walks of life to do well
By Hariz Baharudin, The Straits Times, 8 Jul 2020
Most of life's inequalities can be traced back to people's childhood and that is why the Government's efforts on social mobility start when Singaporeans are young, said Senior Minister Tharman Shanmugaratnam yesterday.
Deep interventions are critical in the early years to spur children from all walks of life to do well in school, he added.
"We are determined to make every effort to help kids who start off with low-income families to have hope in life, to have confidence, and to enter primary school brimming with enthusiasm.
"It can be done," said Mr Tharman, who is also the Coordinating Minister for Social Policies, during the People's Action Party's (PAP) talk show series on Facebook called Straight Talk.
One way the Government has been doing this is by raising the quality of pre-school education, he added, pointing out that it is doubling its expenditure in the next few years.
He also said that in five years, 80 per cent of pre-school education will be supported by the Government, up from 30 per cent eight years ago. Last year, the Early Childhood Development Agency announced that annual spending by the Government on the early childhood sector will double to more than $2 billion in the next few years. This is up from the $1 billion spent in 2018.
Another move to lift standards in the pre-school sector is teacher training, Mr Tharman said, noting that the National Institute of Early Childhood Development has been started to do this.
Beyond these efforts, targeted help for children is available too, he added. He held up the KidStart programme that provides advice and support to families on aspects of bringing up children, such as nutrition and parent-child interaction. It was introduced in 2016. About 5,000 children are set to go through it in the next few years, he said.
Still, more will be done for children who are further behind in their studies, even as such students in Singapore are already allocated the smallest of class sizes and the highest expenditure.
"We're hiring more teachers, more teacher counsellors, more professionals of other types to be in our schools to strengthen the whole school team to help every student in need," he stressed.
Mr Tharman said Singapore has one of the best school systems in the world and the country ends up at the top of the tables for subjects such as reading and mathematics. But it is not just its averages that are high, he added. "Our children from lower-income backgrounds substantially outperform children from lower-income backgrounds in the advanced countries," he said.
In fact, they do better than even the average child in countries such as Switzerland, France, Germany and Sweden, he added.
Work has also gone into preventing a digital divide in Singapore, said the Senior Minister, noting that no matter how poor a family is, every child will have broadband Internet to use at home, which will cost as little as $6 per month. Each child will also have a computer at home, and if the children are on the Education Ministry's financial aid scheme, they will not have to pay for one.
Yesterday, Mr Tharman also pointed out that divisions between children are being reduced by the Government, citing how primary school streaming was abolished more than 10 years ago.
In the same vein, secondary schools are moving away from streaming and towards full subject-based banding. The move does not just help students discover their strengths in specific subjects, but also serves a social aim.
"It enables students to mix more with each other and to interact more with each other as they grow up, and never think that 'I'm stronger than someone else', or 'I'm weaker than someone else'," he said.
Singapore, he added, has more to do to reduce life's inequalities experienced by children, and this requires working with families and professionals to give all children a chance to not be left behind.
"It just means we need deeper interventions, deeper partnerships on the ground with social service professionals, deeper partnerships with families to help unshackle them from their challenges," he said.
Higher tax on the wealthy will cause greater inequality, says Tharman
Inequality will widen if Govt gives out benefits to all
By Hariz Baharudin, The Straits Times, 8 Jul 2020
A system of universal benefits where the Government pays for everyone will lead to greater inequality and an increase in taxes for the middle class, said Senior Minister Tharman Shanmugaratnam.
Addressing calls to change the way Singapore taxes citizens to boost revenue, Mr Tharman said it may seem appealing but, in fact, such a system will widen the gap between the haves and have-nots.
Speaking yesterday during the People's Action Party (PAP) Straight Talk series, he said: "Because if the Government has to pay for everyone, it means the better-off people get the same benefits as the poor.
"And it also means, and we've seen this in so many societies, that you end up with higher taxes on the middle-income group."
The rich can pay more taxes to fund such a system, Mr Tharman added, but "there's no way in which the sums will add up without also raising taxes significantly for the middle-income group".
He said that is what has happened in some advanced countries, which people sometimes think of as "some sort of dream society".
Mr Tharman, who is also Coordinating Minister for Social Policies, said the Singapore way is to keep to a system where taxes on the middle class remain low.
Taxes will go up as society gets older, "because our healthcare expenditures will go up", he added.
But the idea is always to "try to keep taxes as low as possible on the middle class, and use government revenues to help those who need it most, which is the poor, the lower middle-income group and, to some extent, the middle-income group as a whole," he said.
If the Government has to pay for everyone's healthcare, or if it has to subsidise other social schemes, these costs are passed on not just to the Government but to everyone as "nothing is for free", he added.
In his speech live-streamed on Facebook, Mr Tharman said: "Don't just raise taxes across the board (so that) the Government should pay for everything. It's a very important point.
"Some promises look appealing, but they actually lead to greater inequality over time."
The average Singapore worker currently pays about 0 or 2 per cent income tax rate, and the goods and services tax (GST) which is at 7 per cent, he said.
But in advanced countries, the average person ends up paying more than one-third of his income in taxes, with those in Scandinavian countries paying well over 40 per cent, he added.
The Singapore Democratic Party and other opposition parties have suggested the Government increase taxes on the wealthy so more can be spent on people.
For the same reason, opposition parties have called for GST on luxury goods to be raised as well.
Mr Tharman - who is leading the PAP team contesting in Jurong GRC - said Singapore's system is one of collective responsibility, which means that everyone shares risks and no one is left on his own.
He said: "Think hard about the need for a fair system, a progressive system and a sustainable system. And that's basically what we're trying to achieve in Singapore."
Inequality will widen if Govt gives out benefits to all
By Hariz Baharudin, The Straits Times, 8 Jul 2020
Addressing calls to change the way Singapore taxes citizens to boost revenue, Mr Tharman said it may seem appealing but, in fact, such a system will widen the gap between the haves and have-nots.
Speaking yesterday during the People's Action Party (PAP) Straight Talk series, he said: "Because if the Government has to pay for everyone, it means the better-off people get the same benefits as the poor.
"And it also means, and we've seen this in so many societies, that you end up with higher taxes on the middle-income group."
The rich can pay more taxes to fund such a system, Mr Tharman added, but "there's no way in which the sums will add up without also raising taxes significantly for the middle-income group".
He said that is what has happened in some advanced countries, which people sometimes think of as "some sort of dream society".
Mr Tharman, who is also Coordinating Minister for Social Policies, said the Singapore way is to keep to a system where taxes on the middle class remain low.
Taxes will go up as society gets older, "because our healthcare expenditures will go up", he added.
But the idea is always to "try to keep taxes as low as possible on the middle class, and use government revenues to help those who need it most, which is the poor, the lower middle-income group and, to some extent, the middle-income group as a whole," he said.
If the Government has to pay for everyone's healthcare, or if it has to subsidise other social schemes, these costs are passed on not just to the Government but to everyone as "nothing is for free", he added.
In his speech live-streamed on Facebook, Mr Tharman said: "Don't just raise taxes across the board (so that) the Government should pay for everything. It's a very important point.
"Some promises look appealing, but they actually lead to greater inequality over time."
The average Singapore worker currently pays about 0 or 2 per cent income tax rate, and the goods and services tax (GST) which is at 7 per cent, he said.
But in advanced countries, the average person ends up paying more than one-third of his income in taxes, with those in Scandinavian countries paying well over 40 per cent, he added.
The Singapore Democratic Party and other opposition parties have suggested the Government increase taxes on the wealthy so more can be spent on people.
For the same reason, opposition parties have called for GST on luxury goods to be raised as well.
Mr Tharman - who is leading the PAP team contesting in Jurong GRC - said Singapore's system is one of collective responsibility, which means that everyone shares risks and no one is left on his own.
He said: "Think hard about the need for a fair system, a progressive system and a sustainable system. And that's basically what we're trying to achieve in Singapore."
Every working Singaporean needs to be on 'moving escalator' of better skills and income, says Tharman
Top priority is to stop unemployment from spiralling in the face of COVID-19
By Olivia Ho, Correspondent, The Straits Times, 8 Jul 2020
Every Singaporean worker needs to be on a "moving escalator" of better skills and income, said Senior Minister Tharman Shanmugaratnam.
The COVID-19 crisis poses special challenges as a generation of young people entering the workforce may miss their first step onto the escalator, he said yesterday.
At the same time, middle-aged and mature workers may find that the escalator has suddenly stopped, he added.
He said: "We will make sure that doesn't happen in Singapore. Every generation must be on a moving escalator."
Mr Tharman will helm the People's Action Party (PAP) slate in Jurong GRC at the July 10 polls.
Speaking in the live show Straight Talk With PAP broadcast from the party's headquarters in New Upper Changi Road, he said the first order of business in the coronavirus pandemic is to stop unemployment from spiralling upwards here.
In Singapore, unemployment has gone up by fewer than 10,000 people, he added.
He compared this with places such as Hong Kong, Germany and the United States, where unemployment was also previously low - at about 3 per cent - but has since shot up during the crisis.
"In Germany, it's 6.4 per cent," he said. "In Hong Kong, it's close to 6 per cent. In the US, it's at about 13 per cent, although the economists say the true figure is more like 17, 18 per cent."
Had Singapore experienced the same rise in joblessness as Hong Kong and Germany, which are "well-run economies", Mr Tharman estimated that there would be 60,000 to 70,000 more Singaporeans out of work.
He said: "If we had the increase in unemployment that the US has seen, we would have today well over 250,000 Singaporeans becoming unemployed."
Government crisis initiatives such as the Jobs Support Scheme have helped with this, he said, but it takes more than that. Germany, for instance, has an equivalent programme, Kurzarbeit, as does Hong Kong.
Singapore has avoided what these countries are going through because employers and workers here have trust in the system, Mr Tharman said.
"Singaporeans themselves are responsible for this state of affairs of keeping unemployment down because they themselves have been skilling themselves over the years and are playing their part.
"So that's our system - tripartite coordination, trust in each other, and everyone knowing that the Government will do what it takes to ensure that we do not see what happens in all these countries," he said, adding that he had chosen not to bring up the worst examples around the world.
Mr Tharman, explaining the work of the National Jobs Council, which he helms, said it is far better to put government resources into subsidising jobs and skills than into subsidising unemployment, even though both are aimed at helping the jobless.
"A $2-billion-dollar jobs and skills package is far more beneficial to Singaporeans than a $2-billion dollar unemployment benefits package," he said.
The jobs and skills package aims to get them back into the workplace, ideally for a permanent job, or - if there are not enough of these in the short term - then at least on an attachment, where they can get some structured training that provides a pathway to being hired full time, Mr Tharman said.
These measures are supplemented with other COVID-19 support grants to help those who have taken a significant hit to their incomes, he added.
There are even grants for those who want to start new businesses, he said.
"Some of our unemployed are, in fact, starting new businesses and they have grant schemes available to them," said Mr Tharman.
Top priority is to stop unemployment from spiralling in the face of COVID-19
By Olivia Ho, Correspondent, The Straits Times, 8 Jul 2020
Every Singaporean worker needs to be on a "moving escalator" of better skills and income, said Senior Minister Tharman Shanmugaratnam.
The COVID-19 crisis poses special challenges as a generation of young people entering the workforce may miss their first step onto the escalator, he said yesterday.
At the same time, middle-aged and mature workers may find that the escalator has suddenly stopped, he added.
He said: "We will make sure that doesn't happen in Singapore. Every generation must be on a moving escalator."
Mr Tharman will helm the People's Action Party (PAP) slate in Jurong GRC at the July 10 polls.
Speaking in the live show Straight Talk With PAP broadcast from the party's headquarters in New Upper Changi Road, he said the first order of business in the coronavirus pandemic is to stop unemployment from spiralling upwards here.
In Singapore, unemployment has gone up by fewer than 10,000 people, he added.
He compared this with places such as Hong Kong, Germany and the United States, where unemployment was also previously low - at about 3 per cent - but has since shot up during the crisis.
"In Germany, it's 6.4 per cent," he said. "In Hong Kong, it's close to 6 per cent. In the US, it's at about 13 per cent, although the economists say the true figure is more like 17, 18 per cent."
Had Singapore experienced the same rise in joblessness as Hong Kong and Germany, which are "well-run economies", Mr Tharman estimated that there would be 60,000 to 70,000 more Singaporeans out of work.
He said: "If we had the increase in unemployment that the US has seen, we would have today well over 250,000 Singaporeans becoming unemployed."
Government crisis initiatives such as the Jobs Support Scheme have helped with this, he said, but it takes more than that. Germany, for instance, has an equivalent programme, Kurzarbeit, as does Hong Kong.
Singapore has avoided what these countries are going through because employers and workers here have trust in the system, Mr Tharman said.
"Singaporeans themselves are responsible for this state of affairs of keeping unemployment down because they themselves have been skilling themselves over the years and are playing their part.
"So that's our system - tripartite coordination, trust in each other, and everyone knowing that the Government will do what it takes to ensure that we do not see what happens in all these countries," he said, adding that he had chosen not to bring up the worst examples around the world.
Mr Tharman, explaining the work of the National Jobs Council, which he helms, said it is far better to put government resources into subsidising jobs and skills than into subsidising unemployment, even though both are aimed at helping the jobless.
"A $2-billion-dollar jobs and skills package is far more beneficial to Singaporeans than a $2-billion dollar unemployment benefits package," he said.
The jobs and skills package aims to get them back into the workplace, ideally for a permanent job, or - if there are not enough of these in the short term - then at least on an attachment, where they can get some structured training that provides a pathway to being hired full time, Mr Tharman said.
These measures are supplemented with other COVID-19 support grants to help those who have taken a significant hit to their incomes, he added.
There are even grants for those who want to start new businesses, he said.
"Some of our unemployed are, in fact, starting new businesses and they have grant schemes available to them," said Mr Tharman.
Why Progressive Wage Model is better than a minimum wage
Minimum wage is a rung but the Progressive Wage Model is a ladder, says Tharman
By Olivia Ho, Correspondent, The Straits Times, 8 Jul 2020
The Progressive Wage Model which Singapore has in place is better than a minimum wage, Senior Minister Tharman Shanmugaratnam said at a live talk show yesterday.
It is a ladder, of which a minimum wage would only be the first rung, he said.
Opposition parties such as the Workers' Party and Singapore Democratic Party have lobbied during the hustings for a minimum wage to better support low-income earners.
Mr Tharman, however, argued that the Progressive Wage Model is working.
The model, which was first made mandatory for the cleaning sector in 2015, sets out the minimum pay for different job levels and pegs wage increases to a skills ladder for cleaners, security officers and landscape workers. There are plans to extend it to the lift maintenance and bus industries, and eventually to all sectors.
Mr Tharman said low-wage workers in the 20th percentile of the income ladder have seen an increase in wages of close to 40 per cent in real terms over the last 10 years.
The pay of these workers used to be about $1,500 a decade ago, but is now $2,500. Adjusted for inflation, he said, it is close to a 40 per cent increase.
On top of this, the Government adds Workfare benefits to their wages, which, in addition to the Special Employment Credit, is an extra 40 per cent on top of what their employers pay them.
"This is not growth at all costs, as is sometimes claimed," the minister said. "It is growth to provide quality jobs for every Singaporean, and particularly for those who start off with low-paid jobs.
"It is growth to enable them to move up the ladder, with skills, better respect for the job and a sense that they are able to contribute together with everyone else."
He cautioned that this has to be done not drastically - which could cause businesses to shed workers and cost people their jobs - but with great care.
"We are doing something that not many countries do," he said. "Some countries achieve low unemployment by having everyone at work, but not seeing much improvement at work. Some countries go for restructuring of the whole economy, technology replaces workers, workers leave the workforce, unemployment goes up.
"You have got to avoid both those options. We have got to keep unemployment down, keep people at work, but help everyone move up a ladder in the course of their careers, where technology improves the job, where people's skills go up, where wages go up."
He said that costs, too, will have to increase over time as low-wage workers are paid more, whether it be the fees for cleaning an office or conservancy in a condominium.
"But that is a small cost to pay for building a fairer and more equitable society where everyone is moving up together," he added.
"We pay a much larger cost if we end up with a divided society."
Minimum wage is a rung but the Progressive Wage Model is a ladder, says Tharman
By Olivia Ho, Correspondent, The Straits Times, 8 Jul 2020
The Progressive Wage Model which Singapore has in place is better than a minimum wage, Senior Minister Tharman Shanmugaratnam said at a live talk show yesterday.
It is a ladder, of which a minimum wage would only be the first rung, he said.
Opposition parties such as the Workers' Party and Singapore Democratic Party have lobbied during the hustings for a minimum wage to better support low-income earners.
Mr Tharman, however, argued that the Progressive Wage Model is working.
The model, which was first made mandatory for the cleaning sector in 2015, sets out the minimum pay for different job levels and pegs wage increases to a skills ladder for cleaners, security officers and landscape workers. There are plans to extend it to the lift maintenance and bus industries, and eventually to all sectors.
Mr Tharman said low-wage workers in the 20th percentile of the income ladder have seen an increase in wages of close to 40 per cent in real terms over the last 10 years.
The pay of these workers used to be about $1,500 a decade ago, but is now $2,500. Adjusted for inflation, he said, it is close to a 40 per cent increase.
On top of this, the Government adds Workfare benefits to their wages, which, in addition to the Special Employment Credit, is an extra 40 per cent on top of what their employers pay them.
"This is not growth at all costs, as is sometimes claimed," the minister said. "It is growth to provide quality jobs for every Singaporean, and particularly for those who start off with low-paid jobs.
"It is growth to enable them to move up the ladder, with skills, better respect for the job and a sense that they are able to contribute together with everyone else."
He cautioned that this has to be done not drastically - which could cause businesses to shed workers and cost people their jobs - but with great care.
"We are doing something that not many countries do," he said. "Some countries achieve low unemployment by having everyone at work, but not seeing much improvement at work. Some countries go for restructuring of the whole economy, technology replaces workers, workers leave the workforce, unemployment goes up.
"You have got to avoid both those options. We have got to keep unemployment down, keep people at work, but help everyone move up a ladder in the course of their careers, where technology improves the job, where people's skills go up, where wages go up."
He said that costs, too, will have to increase over time as low-wage workers are paid more, whether it be the fees for cleaning an office or conservancy in a condominium.
"But that is a small cost to pay for building a fairer and more equitable society where everyone is moving up together," he added.
"We pay a much larger cost if we end up with a divided society."
Median income and productivity have risen by a third in past 10 years, says Tharman
By Olivia Ho, Correspondent, The Straits Times, 8 Jul 2020
An "urban myth" that usually circulates during election season is that productivity in Singapore has stagnated, said Senior Minister Tharman Shanmugaratnam in a live talk show yesterday.
In fact, Singapore has achieved more than it expected, he said, as median incomes and productivity have both risen by one-third in the last 10 years.
He was speaking in Straight Talk With PAP, a show streamed live from the People's Action Party's headquarters in New Upper Changi Road. The senior minister will helm the PAP team in Jurong GRC at the July 10 polls.
In the past 10 years, median incomes in Singapore have risen by 32 per cent in real terms after accounting for inflation, he said.
"Ten years ago, median incomes were about $2,900," he noted. "Now, in nominal terms, it's $4,600. After adjusting for inflation, it's still 32 per cent - a very substantial increase. Very few countries at the same level of development as Singapore, the same advanced country levels, have seen that continuous increase in incomes."
This has been made possible by raising productivity, he added. The Government has aimed for 2 to 3 per cent productivity growth per year on average in the past 10 years.
Though Singapore had a "tough decade" at the start of the 2000s, with barely 1 per cent productivity growth, the Government shifted gears on different fronts such as foreign worker policy, the SkillsFuture initiative and giving firms incentives to upgrade.
As a result, Mr Tharman said, productivity has grown yearly by an average of 2.4 per cent per worker - or 2.8 per cent, if calculated per work hour.
"What that means is that over 10 years, productivity went up by one-third, just like median wages... That's a story that is not seen elsewhere in the advanced world. And we have to find ways of sustaining it."
But there remain areas of weakness, he said, citing the construction sector, which lags behind those of other advanced countries by a large margin.
The sector will require a major overhaul in the coming years to create jobs for Singaporeans, such as logistics planners, safety officers, machine operators and engineers, he said.
But overall, Singapore is "now in the upper tier of advanced countries in our level of productivity and our level of median incomes", he added.
By Olivia Ho, Correspondent, The Straits Times, 8 Jul 2020
An "urban myth" that usually circulates during election season is that productivity in Singapore has stagnated, said Senior Minister Tharman Shanmugaratnam in a live talk show yesterday.
In fact, Singapore has achieved more than it expected, he said, as median incomes and productivity have both risen by one-third in the last 10 years.
He was speaking in Straight Talk With PAP, a show streamed live from the People's Action Party's headquarters in New Upper Changi Road. The senior minister will helm the PAP team in Jurong GRC at the July 10 polls.
In the past 10 years, median incomes in Singapore have risen by 32 per cent in real terms after accounting for inflation, he said.
"Ten years ago, median incomes were about $2,900," he noted. "Now, in nominal terms, it's $4,600. After adjusting for inflation, it's still 32 per cent - a very substantial increase. Very few countries at the same level of development as Singapore, the same advanced country levels, have seen that continuous increase in incomes."
This has been made possible by raising productivity, he added. The Government has aimed for 2 to 3 per cent productivity growth per year on average in the past 10 years.
Though Singapore had a "tough decade" at the start of the 2000s, with barely 1 per cent productivity growth, the Government shifted gears on different fronts such as foreign worker policy, the SkillsFuture initiative and giving firms incentives to upgrade.
As a result, Mr Tharman said, productivity has grown yearly by an average of 2.4 per cent per worker - or 2.8 per cent, if calculated per work hour.
"What that means is that over 10 years, productivity went up by one-third, just like median wages... That's a story that is not seen elsewhere in the advanced world. And we have to find ways of sustaining it."
But there remain areas of weakness, he said, citing the construction sector, which lags behind those of other advanced countries by a large margin.
The sector will require a major overhaul in the coming years to create jobs for Singaporeans, such as logistics planners, safety officers, machine operators and engineers, he said.
But overall, Singapore is "now in the upper tier of advanced countries in our level of productivity and our level of median incomes", he added.
On need for collective effort to ensure equitable society
By Lim Yan Liang, The Straits Times, 8 Jul 2020
For Singapore to be an equitable society, citizens must take collective responsibility for one another, especially in old age, Senior Minister Tharman Shanmugaratnam said yesterday.
In countries that have done away with, or cut down on the scope of, social security systems and left saving for retirement and healthcare to the individual, "what you find is that society becomes more divided and it becomes more unequal in the years when people are the most vulnerable, which is their older years", he said. "It happens in society after society."
That is why the whole aim of schemes like the CPF Life annuity and MediShield Life basic health insurance is to pool risks, with the Government providing additional support to help those in the lower-and middle-income group in their silver years, said Mr Tharman in a speech broadcast online from the People's Action Party's headquarters in Bedok.
For instance, Central Provident Fund balances attract a higher interest rate when a person turns 55, and the enhanced Silver Support Scheme will see low-income retirees get quarterly payouts of $900 from next year.
"You don't know who's going to live longer than the others, you don't know who's going to have the misfortune of having a serious illness," he said. "We don't know who's going to be at the wrong end of life's vicissitudes (so) we've to share risks together."
He was responding to the issue of retirement adequacy raised by opposition politicians ahead of Friday's election. The Workers' Party has called for wider use of Medisave and free public transport for seniors, while the Singapore Democratic Party wants the bottom 80 per cent of retirees over 65 to be given a monthly income of $500.
Mr Tharman said an inclusive society is "not just about pious statements, not just a set of political declarations", but a fair, progressive and sustainable system.
The community, too, has a part to play, he added, citing the popular Hokkien song Ai Piah Cia Eh Yia, or You Must Fight To Win.
He said: "The most interesting ditty within the song: What happens in life is determined 30 per cent by the will of the heavens and 70 per cent by hard work or, in those days, bitter hard struggle."
Singapore should retain the social ethos where people work hard for themselves, take responsibility and take pride in standing on their own feet, he said. "But you can't rely on the heavens, you can't leave people to fend for themselves either. That 30 per cent has to be community (effort)," he added.
By Lim Yan Liang, The Straits Times, 8 Jul 2020
For Singapore to be an equitable society, citizens must take collective responsibility for one another, especially in old age, Senior Minister Tharman Shanmugaratnam said yesterday.
In countries that have done away with, or cut down on the scope of, social security systems and left saving for retirement and healthcare to the individual, "what you find is that society becomes more divided and it becomes more unequal in the years when people are the most vulnerable, which is their older years", he said. "It happens in society after society."
That is why the whole aim of schemes like the CPF Life annuity and MediShield Life basic health insurance is to pool risks, with the Government providing additional support to help those in the lower-and middle-income group in their silver years, said Mr Tharman in a speech broadcast online from the People's Action Party's headquarters in Bedok.
For instance, Central Provident Fund balances attract a higher interest rate when a person turns 55, and the enhanced Silver Support Scheme will see low-income retirees get quarterly payouts of $900 from next year.
"You don't know who's going to live longer than the others, you don't know who's going to have the misfortune of having a serious illness," he said. "We don't know who's going to be at the wrong end of life's vicissitudes (so) we've to share risks together."
He was responding to the issue of retirement adequacy raised by opposition politicians ahead of Friday's election. The Workers' Party has called for wider use of Medisave and free public transport for seniors, while the Singapore Democratic Party wants the bottom 80 per cent of retirees over 65 to be given a monthly income of $500.
Mr Tharman said an inclusive society is "not just about pious statements, not just a set of political declarations", but a fair, progressive and sustainable system.
The community, too, has a part to play, he added, citing the popular Hokkien song Ai Piah Cia Eh Yia, or You Must Fight To Win.
He said: "The most interesting ditty within the song: What happens in life is determined 30 per cent by the will of the heavens and 70 per cent by hard work or, in those days, bitter hard struggle."
Singapore should retain the social ethos where people work hard for themselves, take responsibility and take pride in standing on their own feet, he said. "But you can't rely on the heavens, you can't leave people to fend for themselves either. That 30 per cent has to be community (effort)," he added.
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