DPM Lawrence Wong at IPS Singapore Perspectives 2023

Singapore has a vision for tomorrow – to improve work and employment

Concrete suggestions to improve the future of work, the security of work and the reward in work can strengthen both the workforce and society.

By Terence Ho, Published The Straits Times, 18 Jan 2023

In his speech at the Institute of Policy Studies (IPS) Singapore Perspectives conference on Monday, Deputy Prime Minister Lawrence Wong highlighted three challenges relating to work. These are the changing nature of work, retirement security and income distribution – what Mr Wong dubbed the “future of work”, the “security of work” and the “reward of work”.

Mr Wong also articulated three corresponding responses: redoubling investments in skills and human capital, bolstering retirement security, and investing in quality jobs to make every profession and pathway viable and rewarding.

These aims are not new, but what struck me, both from the speech and the dialogue that followed, was the opportunity we have to transform society by making work better.

Given the centrality of work to Singapore’s social compact, improvements to the world of work hold the promise of building a happier, healthier and more cohesive society.

Realising this vision, however, will not be straightforward. It will take significant investments in time and finances, mindset shifts as well as partnerships across the whole of society to get us there.

Building a world-class skills, training and job placement ecosystem

The first response – stepping up human capital investment – entails strengthening the skills and training ecosystem, improving adult learning and creating pathways to better jobs. It is easy to train workers, but much harder to translate training into higher productivity, better jobs and improved pay.

Few countries have managed to build a well-oiled, comprehensive system of adult learning and placement. So if Singapore succeeds in this endeavour, it would be a notable accomplishment with significant benefits to our economy and society.

Achieving this will not be an easy task. Beyond the careful curation of training programmes to meet current and future skills demand, there is also the need to match workers to programmes and jobs that best align with their aptitude and inclination.

For those in employment, it may be a challenge to find the time to invest in training amid the demands of work and family. Without the assurance of better pay and prospects, few would commit time and effort to acquire new skills.

Company-led training is therefore critical, but cannot be the sole route of skills upgrading. After all, firms may under-invest in transferable skills that make employees more marketable elsewhere. Worker-initiated training meanwhile can open the door to new jobs and opportunities. For instance, some have taken up graduate diploma or professional certificate courses to equip themselves for a change of career.

Singapore Budget 2020: Advancing as One Singapore

$6.4 billion set aside to support businesses, families and agencies impacted by COVID-19, coronavirus outbreak;

- $4 billion Stabilisation and Support Package will provide job and cash-flow support to help firms retain and retrain workers

- $1.6 billion Care and Support Package to help families defray some of their household expenses amid the downturn

- $800 million to support front-line agencies fighting the outbreak

GST hike from 7 per cent to 9 per cent will not take place in 2021; $6 billion Assurance Package to cushion impact of hike




Singaporeans aged 21 and above to get one-off cash payout ranging from $100 to $300

$1,000 SkillsFuture Credit top-up for mid-career workers



 
More financial support for students, particularly from lower-income families

Government to match cash top-ups to seniors' CPF savings by up to $3,000 over 5 years

More elderly Singaporeans to qualify for Silver Support, with payouts raised by 20%



$8.3 billion to be allocated for economic transformation and growth

New $5 billion Coastal and Flood Protection fund to tackle 'significant' risk of rising sea levels

Highest projected deficit of $10.9 billion in decade to cushion coronavirus fallout

Singapore system has done better than other countries in improving social mobility: Ministry of Social and Family Development report

Efforts to lift lower-income group have borne fruit, says MSF report
But policies will have to adapt to changing needs to ensure continued social mobility
By Theresa Tan, Senior Social Affairs Correspondent and Cara Wong, The Straits Times, 2 Nov 2018

The Singapore system is not perfect, but it has performed better than most in improving the lives of poor and vulnerable families here, the Ministry of Social and Family Development (MSF) said in a first-of-its-kind report released yesterday.

But the country is now at a crossroads, with the pace of economic development moderating and demands for social spending increasing, as the society is ageing, the report said.

"We have to adapt our policies in response to changing circumstances and needs," it added.

The report outlined how sustained efforts over the years had improved lives for the low-income - with more having their own homes and more students from poor families making it to tertiary education.

"But the same measures now bring new challenges that we need to address, to ensure that stratification is not enshrined and social mobility continues to be spurred," the report said.

"We will keep studying fresh ideas and approaches, including those from other societies, and try them out where they have promise, to help improve Singapore and the lives of Singaporeans," it said.

"But we must not forget that trade-offs are unavoidable in social policy, and all too often, good intentions have led to counterproductive results."

Social inequality and mobility have dominated the national discourse in recent weeks.

For example, at an Institute of Policy Studies (IPS) event on Oct 25, Deputy Prime Minister Tharman Shanmugaratnam said safeguarding social mobility would get more difficult as Singapore progresses because that is the nature of a meritocratic system.

"Those who succeed try to help their children and those who haven't succeeded find that the odds increase against them doing well in life," he said.

A key step in tackling income inequality is to ensure that everyone - including those in the middle class - continues to progress, he said, giving the analogy of being on an escalator that has to keep moving so that everyone is better off.

Education Minister Ong Ye Kung made a similar point about meritocracy at a separate event on Oct 24.

Still, when it comes to educational progress, the results are encouraging, according to the 31-page paper.

For instance, nine in 10 students from the bottom 20 per cent of families in terms of socio-economic backgrounds made it to post-secondary education today, up from five in 10 students 15 years ago.

Besides education, the report listed government policies in areas such as employment, home ownership and healthcare to improve the lot of the needy.

It said employment rates for Singaporeans and permanent residents, including older workers, have risen in the past decade. For workers aged 65 and older, the employment rate rose from 14.4 per cent in 2007 to 25.8 per cent last year.

The Workfare Income Supplement has been one of the most effective schemes in getting people, especially older workers, to work, it noted. It encourages low-wage workers to work, by providing Central Provident Fund top-ups and cash supplements.

More poor families are also moving out of heavily subsidised public rental flats and buying their own homes, and this is made possible by significant housing grants and affordable prices of flats.

There were about 500 such families in 2013, and this doubled to almost 1,000 households last year.

The number applying for a rental flat has also fallen by 44 per cent in the same time period.

Using the Organisation for Economic Cooperation and Development method, Singapore's Gini coefficient, after taxes and transfers, fell from 0.388 in 2007 to 0.356 last year. The Gini coefficient is a measure of income inequality; the lower the score, the more equal a society.

The report said the Government will continue to invest in education, help those who have lost their jobs to find new ones and assist seniors to cope with their medical expenses, among other plans to support low-income Singaporeans.

An MSF spokesman said the report is the Government's contribution to the ongoing social discourse on helping the poor and vulnerable.

She added: "We hope the paper will set a helpful context for deeper conversations and actions on the way forward. We also hope this will galvanise more partners to step forward and join us all in action."

Mr Leonard Lim, an IPS research associate, said Singapore's Gini coefficient, after taxes and transfers, is lower or comparable to developed countries such as the United States - a testament to the Government's efforts to redistribute income.

He added: "Education is the engine that powers social mobility. The moves to intervene early in education are most significant to me as they are an indication that this Government is intent on breaking any significant cycle of inter-generational transmission of poverty."

New dialect TV series to help explain Govt schemes to seniors:《吃饱没?》Eat Already?

By Siau Ming En, TODAY, 1 Sep 2016

A new dialect drama series aimed at communicating government information and messages to seniors who are more familiar with the vernacular will air on Channel 8 starting next week.

This series will be shown weekly in the afternoon within the existing time belt for dialect programmes — Fridays, from 10.30am to 12.30pm — and “the amount of dialect content on free-to-air TV remains unchanged”, broadcaster Mediacorp said on Thursday (Sept 1) in a joint statement with the Ministry of Communications and Information (MCI).

The 10-episode Hokkien series titled Eat Already? is a collaboration between the MCI and the broadcaster, and will touch on issues such as active ageing and lifelong learning.



It will also provide information on government schemes and subsidies, including MediShield Life, the Community Health Assist Scheme and the Silver Support Scheme.

This information will be woven into a story centred on an elderly widow and the problems she faces in her job and as a mother, and the support she receives to overcome them.



Veteran actors Li Yinzhu, Wang Lei, Marcus Chin and Aileen Tan star in the series, which is directed by filmmaker Royston Tan.

Mr Tan’s recent telemovie on Channel 8, The Provision Shop, was also commissioned by the MCI.

The ministry and Mediacorp said on Thursday that this new drama series, which will air from Sept 9, from noon to 12.30pm, builds on the use of dialects in explaining the Pioneer Generation Package (PGP) to seniors.

In his address on Seniors’ Wellness Day on Thursday, Minister of State for Health, Communications and Information Chee Hong Tat said statistics have shown that among the Chinese pioneer generation, more than half of them still use dialects at home.

Following efforts to release videos on the PGP in vernacular languages and having volunteers explain in dialects how the package works, it was found that 96 per cent of the pioneer generation said they were aware of the package, Mr Chee added.

Golden spending in the silver years

By Sumit Agarwal, Jessica Pan, and Qian Wenlan, Published The Straits Times, 5 Aug 2016

A familiar fact of life is that expenditures rise as we enter into working adulthood, spurred in part by our need to live well, supported by higher disposable income. However, when we retire into our grey years, there is no more active monthly income generated to fund such expenditure.

In fact, research demonstrates that if we track the life cycle consumption of an individual, it follows a "hump" shape with expenditure peaking in middle age and then declining in the years that follow.

While it is not surprising that retirement curtails expenditure, what is more insightful is an understanding of whether the decline in consumption is consistent across the basket of goods and services. This will bear implications on, say, how to help retirees cope with their silver years - something critical in an ageing society like Singapore; or what businesses are likely to thrive for this burgeoning pool of retirees.

Using financial transactions of 180,000 customers from a leading bank in Singapore between April 2010 and March 2012, we compared how Singaporeans spend across different age groups. Besides monthly statement information on checking account and credit/debit card spending, the data also furnished information on expenditure across product categories.

MIDDLE-AGE CONSUMPTION

Singaporeans follow the typical hump-shaped life cycle consumption pattern observed in past research. However, we observe that the life cycle pattern of spending across different product categories differs.

In particular, post-middle age Singaporeans spend much less on apparel/small durables, dining and entertainment/services than their younger counterparts.

However, although their supermarket spending and transportation/travel are less than younger Singaporeans', the difference is modest.

Pioneer Generation Ambassadors: Volunteers to explain government schemes to all seniors aged 65 and up

By Charissa Yong, The Sunday Times, 10 Jul 2016

From next month, volunteers will fan out across Singapore to explain to senior citizens the various government schemes they can tap.

This comes as the Government moves to bring greater peace of mind to Singapore's seniors amid an ageing population.



Announcing this last night, Prime Minister Lee Hsien Loong said: "We want to do it because we care for our seniors, Pioneers and non-Pioneers alike."

The initiative is an expansion of the Pioneer Generation Ambassador scheme, which started two years ago to reach out to Singapore's pioneers about the benefits they are entitled to under the Pioneer Generation Package.

With their expanded role, the Pioneer Generation Ambassadors will not just visit pioneers - who turn 67 and older this year - but will also reach out to 90,000 Singaporeans aged 65 and older.

During these visits, they will explain to the seniors how they can benefit from relevant government schemes including: MediShield Life universal health insurance; the Community Health Assist Scheme that provides medical subsidies; the GST voucher scheme that gives out special cash payments; and the Silver Support Scheme for needy elderly.

Mr Lee said these schemes benefit more than just pioneers, and cover many other seniors as well.

He added that the volunteers can "take care of our seniors, whether pioneers or not, and keep in touch with them".

Inequality dashes retirement dreams

The number of seniors under pressure to continue working is growing, making retirement out of their reach
By Lydia Lim, Associate Opinion Editor, The Sunday Times, 5 Jun 2016

I remember a recent conversation with two friends, a married couple, about Bob Buford's book Halftime.

In it, Mr Buford - a Texas tycoon who made his fortune from cable television - splits life into two halves; the first is a quest for success and the second, a quest for significance. In this paradigm, people spend the first part of their lives acquiring assets for themselves, including an education and a career, and the second part giving back. Today, the Halftime Institute he set up helps people in many countries, including here in Singapore, in their quest for meaning in life.

But this Halftime paradigm, I have come to realise, is relevant only to a small select group of workers.

The response of my friends was telling. While the husband shared my enthusiasm for the Halftime approach, the wife asked immediately: "Isn't Halftime only for professionals and others on good incomes? Most people have to work for money. They can't afford to think about meaning."

She would know since she runs a small business that aims to provide jobs for single mothers and other women in financial need.

Her question was a wake-up call for me because I had long viewed myself as enlightened in my thinking on retirement. When my father announced his plans to stop work, I quickly got him a copy of transitions expert Nancy Schlossberg's book Revitalising Retirement, which shifts the focus in retirement planning from savings - also known as one's financial portfolio - to identity, relationships and purpose, or what she terms "psychological portfolio".

Now, I see that those of us who have portfolios of any kind to speak of are the fortunate ones. There are many who do not. In fact, a majority of people may well have no choice but to work into their old age so as to meet their needs and those of their family.

Hong Kong: Aged and Abandoned

Meet the people too poor to grow old in Hong Kong

2016 Budget Statement debate in Parliament

Budget 2016 Debate Round-Up Speech by Minister for Finance Heng Swee Keat on 6 April 2016

Budget 2016 'is but one step in a longer journey' for Singapore
Larger goal is to make every Singaporean a winner in the long run, says Heng as he wraps up debate
By Yasmine Yahya, Assistant Business Editor, The Straits Times, 7 Apr 2016

Parliament yesterday wrapped up the debate on the Government's Budget, with Finance Minister Heng Swee Keat saying it signalled the country's determination to transform its economy for the future and keep Singapore thriving.

Rounding up the debate in which 53 MPs spoke over three days, he said that while the Budget was focused on businesses, especially help for small and medium-sized enterprises (SMEs), this would lead to better jobs for workers.

Budget 2016's support for seniors through Silver Support payouts was also about helping the families taking care of them.

And its measures for the young, from pre-school subsidies to KidStart for those from low-income homes, will enable them to seize opportunities, build good careers and, in turn, support their loved ones.

The Budget, Mr Heng said, is "our first step in our journey towards SG100". To embark on this journey, companies have to transform themselves for long-term growth, and workers have to continually learn skills that the world needs.

And everyone should look out and care for one another as a community, he added.

"It is not possible for the Government to keep handing out goodies to everyone, year after year. Instead, each Budget must build on the previous ones to carry forward the momentum to future Budgets."

People should not assess the Budget just by how much they stand to gain, as the larger goal is "to make every Singaporean a winner in the long run", Mr Heng said.

Budget 2016 targets help at companies, families who need it most

By Chia Yan Min, Economics Correspondent, The Straits Times, 4 Apr 2016

This year's Budget was a relatively quiet affair - no blockbuster handout packages or radical policy announcements - but its low-key nature belied a weighty message.

In his maiden Budget speech on March 24, Finance Minister Heng Swee Keat made it clear that the push for economic transformation and restructuring is becoming an increasingly urgent priority.

This means not just helping firms and industries ride out slow economic growth but - more importantly - transforming them through innovation and beefing up collaboration within and across industries.

The minister unveiled a package of measures to provide some relief to smaller firms hit by the ongoing slowdown, such as raising the corporate income tax rebate from 30 to 50 per cent and a new scheme to help small and medium-sized enterprises (SMEs) borrow working capital more easily.

But the heaviest emphasis was on targeted aid to give firms and workers a lift in an increasingly uncertain and competitive world.

"Even as we provide immediate relief and support amid the current cyclical slowdown, we must press on with economic transformation," Mr Heng said.

"The global economic landscape is changing, and our challenges are pressing. We have a narrow window. We must find every opportunity to transform, to emerge stronger in the coming years."

The Budget contained a $4.5 billion Industry Transformation Package aimed at helping firms - SMEs in particular - automate, scale up and go overseas.

A significant portion of this is the new Automation Support Package, which will cost more than $400 million over three years and is aimed at getting companies to ramp up the use of automation.

Why working mums should be happy to start paying tax

Seen from a family perspective, taxes paid may give solace to a relative receiving Silver Support
By Chua Mui Hoong, Opinion Editor, The Sunday Times, 3 Apr 2016

Each year, the Budget rolls around and agitates or delights different segments of society, with its slew of new measures to cut or raise taxes.

This year, two measures in particular have drawn public attention.

The first is the move to cap the amount of personal income that working mothers can claim for tax relief, at $80,000. They will now have to pay tax on income above that amount.

Although the move is expected to hit just about 1 per cent of earners, the outrage from this group of high-earning, and presumably very well-educated and hence vocal, women has been palpable, going by comments from folks I know.

But the fact is that working mothers have enjoyed generous tax relief for years. I didn't realise how much, until I saw a March 28 article in The New Paper that tabulated just how much tax savings a high-earning mother can make.

A working mum below 55 years of age, earning $150,000 a year, can claim tax relief in excess of that amount, if she has three children; supports one set of parents including one who is handicapped; hires a maid, and tops up her retirement savings in the Central Provident Fund (CPF) with the Supplementary Retirement Scheme (SRS).

In other words, she pays no tax.

The lion's share of relief comes from her children: the working mother child relief for the three kids comes up to $90,000 alone. With the proposed cap of $80,000 in tax relief, she will have to pay tax amounting to about $2,650.

TNP then helpfully computed how much tax the same woman would pay, if she could not claim all those child reliefs and other reliefs, and if she can claim only the earned income relief of $1,000 that all taxpayers can claim.

The answer: $10,950.

In other words, the rest of us taxpayers are subsidising the tax bills of working mums who earn $150,000, to the tune of nearly $11,000 a year. And to think that when the rules change to tax them $2,650, they complain?

Community Networks for Seniors to be piloted soon: Heng Swee Keat

Scheme to help seniors will be piloted soon
By Priscilla Goy, The Straits Times, 31 Mar 2016

A new programme to better coordinate support services for the elderly will be piloted in three to five precincts over the next few months, and then be scaled up if successful.

Finance Minister Heng Swee Keat announced the Community Networks for Seniors pilot in his Budget speech, and disclosed further details yesterday during a visit to the Thong Kheng Senior Activity Centre (TKSAC) in Bukit Merah.

Institutions such as schools, businesses and non-profit organisations could be among those providing support, such as by offering befriending services or delivering food.

At the heart of the scheme will be a small team of full-time government officers who will study the health and social needs of seniors and coordinate help efforts.

The Government hopes to help seniors discover any health issues they may have earlier, so that they can be managed.

Mr Heng said: "Our population is ageing rapidly. To enable our seniors to age with dignity and vitality, we need to shift our centre of care from the hospital setting to the neighbourhood."

Asked how this initiative differs from existing social service offices (SSOs), which also help to coordinate support efforts, he said: "SSOs look after broad social needs, but if you look at the healthcare needs, (we need to see) how we can work more closely together with the Health Promotion Board and hospitals... This is a very important initiative."

Dr Amy Khor, Senior Minister of State for Health, and Ms Joan Pereira, MP for Tanjong Pagar GRC, joined Mr Heng on the visit.

Dr Khor said the pilot programme could lead to stronger partnerships between the help groups and better coordinate support services.

The TKSAC is in Ms Pereira's Henderson-Dawson ward, which now has a network that is similar to the Community Networks for Seniors pilot.

Budget 2016: Partnering for the Future

Singapore Budget 2016



 



Budget to 'build our future together': Heng Swee Keat
Prudent plan balances focused relief for households and firms with longer-term goal of preparing them for future
By Yasmine Yahya, Assistant Business Editor, The Straits Times, 25 Mar 2016

The first Budget of the Government's new term was unveiled yesterday - a prudent plan that balanced targeted relief for companies and households with the longer-term objective of getting them future-ready.

Finance Minister Heng Swee Keat, delivering his maiden Budget, set the tone early on in his relatively compact speech. With SG50 celebrations over, it was time to plan for Singapore's next 50 years, he said.

On the economic front, this means not just helping firms and industries ride out current economic uncertainties but, more importantly, transforming them through deeper innovation and collaborations.

Workers, who will have to adapt to changing job demands, will get further help to learn new skills, and the most vulnerable households will get enhanced support to ensure they do not get left behind. "Core for us to succeed is the spirit of partnership," declared Mr Heng, who circled back often to this theme. "Together, we are weaving a rich tapestry - each thread a different colour and texture, but woven together to give strength and resilience to our economy and our society."

Mr Heng acknowledged that firms are facing tough conditions, from rising costs to slowing export demand. But while the outlook is subdued, he noted that the economy is still expected to grow. "We must not let pessimism take hold, lest it creates self-fulfilling expectations. The Government will continue to monitor the situation, and stands ready to act if conditions warrant."

Nonetheless, he announced a package of measures to provide smaller companies with some short-term relief, such as raising the corporate income tax rebate from 30 to 50 per cent and a new scheme to help small and medium-sized enterprises (SMEs) borrow working capital more easily.

But firms hoping for further delays to foreign worker levy hikes would mostly have been disappointed - he deferred levy increases for work permit holders in only the marine and process sectors, for a year.

Mr Heng stressed that even as firms navigate the current uncertainties, they must keep their eye on the future. "The global economic landscape is changing, and our challenges are pressing. We have a narrow window. We must find every opportunity to transform, to emerge stronger in the coming years."

Elderly eligible for Silver Support Scheme to get cash payments automatically

Eligible seniors will receive their quarterly cash payouts automatically, to help them cope with living expenses
By Toh Yong Chuan, Manpower Correspondent, The Straits Times, 18 Mar 2016

Eligible Singaporeans will not need to apply for the Silver Support Scheme - for those aged 65 or older - when it is launched this year, as they will receive their quarterly cash payments automatically.

The scheme, to help cash-strapped retirees cope with living expenses, is the latest to join the growing list of financial help programmes in which recipients are automatically included.

The Silver Support Scheme was first announced by Prime Minister Lee Hsien Loong at the National Day Rally in August 2014.

When the law was passed to implement the scheme last August, Manpower Minister Lim Swee Say said in Parliament that about 150,000 Singaporeans will receive a quarterly payout of $300 to $750 this year.

Asked for an update this week, the Ministry of Manpower (MOM), which is spearheading the scheme, would say only that the details are still being worked out.

But a spokesman disclosed that those who are eligible "will automatically receive payouts as long as they remain eligible".

"All eligible recipients will be notified in due course," she added.

MOM would not say when or how eligible recipients would be notified, but the spokesman said: "We are finalising the eligibility criteria and operational details of the Silver Support Scheme.

"More information on the scheme will be announced during Budget 2016."

Mr Lim had said in Parliament previously that the Government will consider factors such as lifetime wages, the level of household support and housing type to determine if a person qualifies.

The scheme is one of the most highly anticipated government programmes of the Budget, which will be unveiled next week.

Parliament Highlights - 17 Aug 2015

Parliament passes Silver Support Scheme Bill
Seniors to enjoy payouts from 2016
By Walter Sim, The Straits Times, 18 Aug 2015

A new law detailing the framework and penalties for the Silver Support Scheme that was unveiled in this year's Budget has been passed.

This paves the way for 150,000 eligible Singaporeans, aged 65 and above, to get a quarterly payout of $300 to $750 from early next year.



The scheme's administrator - the CPF Board - will develop a system to automatically assess a person's eligibility, and to make payments to recipients. A commissioner will also be appointed to, among other things, review appeal cases.

Information will be pulled from government databases for means- testing. But safeguards will be put in place, and Singaporeans may opt out from this process, said Manpower Minister Lim Swee Say yesterday.

The scheme will be permanent and will apply to "both current and future generations" of elderly people. Mr Lim will also look into Dr Fatimah Lateef's (Marine Parade GRC) suggestion to allow payouts to authorised third parties or next-of-kin of those who are unable to directly receive the benefits.

The law will also make it an offence to provide false information to qualify for Silver Support benefits, or to receive a higher quantum. Those found guilty face a maximum $5,000 fine and a year in prison.

Govt made shift in social and economic policies well before 2011 election: DPM Tharman at the ESS SG50 Special Distinguished Lecture

Changes meant to raise real incomes, narrow income gap and keep social mobility alive
By Rachel Chang, Assistant Political Editor, The Straits Times, 15 Aug 2015

The Government's shift to the left in social and economic policies began almost a decade ago, well before 2011, Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam said yesterday.

In a special lecture to the Economic Society of Singapore, he sought to debunk the myth that this shift was precipitated by electoral losses in the 2011 General Election.



"The world did not start in 2011," he said. "We made very clear our intentions and motivations in 2007, (stated that) it was going to be a multi-year strategy and, step by step, starting from the kids when they are young, through working life and into the senior years, we have been moving towards a more inclusive society, step by step. We intend to continue on this journey, learning from experience and improving where we can."

Mr Tharman cited how government transfers to the bottom one-fifth of the population had gone up in a linear trend since 2005, with no post-2011 spike.

In 2005, lower-income households received $1.03 in government transfers, after taxes, for every $1 they earned. By 2010, this was $1.36. This year, it is $1.63.

"I recognise that there's some political cunning in saying that this all came about because of GE 2011. I'm sorry, it didn't," he said.

Rather, the key architect of Singapore's progressive project said that its start point was the landmark Workfare policy - "a major break in our thinking" - which began topping up the wages of low-income earners from 2007.

In his hour-long address, Mr Tharman sketched out how the Government's decisive shift has involved a battle on three fronts: raising real incomes for all, tempering income inequality and keeping social mobility alive.

He brandished statistics that showed progress on all fronts. Real median household incomes - after taxes and government transfers - rose 39 per cent in the last decade here, compared with 17 per cent in Finland and 5 per cent in Hong Kong.

And Singapore has tempered its Gini coefficient, a measure of income inequality, from 0.43 to 0.37 through government redistribution. This was done while maintaining a light burden of tax on the middle-income group, he emphasised: In Singapore, middle-income households get $2 in benefits for every dollar in tax that they pay.

In contrast, the Scandinavian model is one where the Gini coefficient has been tempered more drastically, but with the trade-off of a high burden of taxation not just on the rich, but on the middle-income household, he said.

Mr Tharman reiterated his philosophy of "active government intervention for self-reliance" with a new twist: The Government will not be "hands-off nor give handouts" but build a system of "hand-ups", he said, defined by support especially for those from needy backgrounds, to discover their own strengths.

It has poured resources into early education for children from disadvantaged families. In housing, substantial grants have allowed over 1,800 families whose household incomes are $1,000 or less, to own their own flats.

But for Singapore to continue to succeed, inclusivity in its social fabric must be accompanied by innovation in its spirit, Mr Tharman said.

A highly innovative society, he added, is not one defined by a few ground-breaking creations, but one where every person is constantly striving for greater excellence.

Parliament Highlights - 13 Jul 2015

Ministerial Statement on Sabah Earthquake

Schools to continue outdoor learning trips at home, abroad

But school trips to Mt Kinabalu temporarily suspended as a safety precaution: Minister
By Pearl Lee, The Straits Times, 14 Jul 2015

Schools will continue to provide both local and overseas outdoor adventure learning programmes for students because they are useful and effective tools for learning, Education Minister Heng Swee Keat said in Parliament yesterday.

But as a safety precaution, all school trips to Mount Kinabalu will be suspended for the time being.

In a ministerial statement on the tragedy that befell Tanjong Katong Primary School (TKPS) pupils and teachers when they went up Mount Kinabalu for a trip on June 5, Mr Heng said the earthquake in Sabah was an unforeseen natural disaster that could not have been prevented.



The 6.0-magnitude quake killed 10 people from Singapore, of which seven pupils and two teachers were from TKPS. An adventure camp guide from local firm Camp Challenge also died in the incident.

The school sent 29 pupils and eight teachers to Mount Kinabalu for its annual leadership camp for pupil leaders.

Said Mr Heng: "Whether a participant perished in the earthquake depended on where he or she happened to be at the time. It made no difference whether the participant was a child or adult, novice or experienced mountaineer.

"Seismologists considered the probability of such a destructive earthquake happening in the area around Mount Kinabalu to be unknown. There was no prior warning," he added.

"No matter how careful our schools may be in planning their overseas trips, events that are beyond our control and prediction may still occur, whether natural disasters or not."

Mr Heng said the Malaysian government has said it will assess and monitor seismic movements in Sabah and review its safety measures for climbers.

"Until the safety of Mount Kinabalu is ascertained by the Malaysian authorities, no schools will be allowed to take students there," he said.

But even as the Ministry of Education (MOE) is taking extra precautions with Mount Kinabalu, Mr Heng said outdoor learning journeys are "effective learning platforms" that build confidence, adaptability, and resilience.

Parliament Highlights - 11 May 2015

Warning over private housing glut in Johor
S'porean investors could be hit if property prices fall: Lawrence Wong
By Charissa Yong, The Straits Times, 12 May 2015

THE nearly 336,000 private residential properties in the pipeline in Johor state are more than all the private homes currently standing in Singapore.

Monetary Authority of Singapore (MAS) board member Lawrence Wong gave this perspective in Parliament yesterday when he warned that a glut of private residences in Johor could cause a fall in property values.

Most of these residences are in the Iskandar development zone of southern Johor where many Singaporeans have invested in such properties.

In contrast, latest official figures show Singapore has 327,811 private homes. There are another 83,642 in the pipeline, including executive condominiums.

But some Singaporeans are becoming more cautious, said Mr Wong, who is also Minister for Culture, Community and Youth.

The number of Malaysian properties bought through real estate agencies in Singapore fell from 2,609 in 2013 to 838 last year.

But not everyone recognises the risks of buying property abroad, said Mr Wong, who was speaking on behalf of Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam, the minister in charge of MAS.

SG50: Time for new Singapore story?

By Fiona Chan, Deputy Political Editor, The Straits Times, 23 Mar 2015

A BONUS public holiday, free concerts in the park and a bigger-than-usual National Day Parade are some of the special ways Singapore is marking its 50th anniversary of nationhood this year.

But the SG50 occasion is also an opportune time to contemplate the country's journey so far and ponder on ways the Singapore story may evolve in the next 50 years.

This year is "a time to reflect on what makes us Singaporean; to bond as a people and build confidence for our future", Minister for Culture, Community and Youth Lawrence Wong said in Parliament this month.

Indeed, the vision that unified independent Singapore in its first 50 years has become less relevant as the country prepares to embark on the next 50 years.

That initial vision was of a nation which did not willingly become independent and had toiled for survival against seemingly insurmountable odds.

But with most Singaporeans now used to stability and prosperity rather than turbulence and insecurity, calls for a new narrative to take the country forward have emerged from various quarters.

In response, Prime Minister Lee Hsien Loong agrees that the Singapore story needs to move beyond the relatively simple account of a young country making its way in the world.

"I think that for the next phase the narrative cannot be just one single word like nation-building," he said in an interview with the local media in January this year.

In fact, he had signalled in 2013 a "new way forward" for the country, which he said was "at an inflection point".

Speaking at the annual National Day Rally then, he said: "Our society is more diverse, our economy is more mature, our political landscape is more contested."

While Singapore's ideals - of a just and equal society in which every citizen has a chance to succeed regardless of race, language or religion - remain the same, they need to be interpreted again "in this new phase and with a new generation", PM Lee added.

Once upon a time

SINGAPORE'S narrative in its first 50 years of independence was clear. Cast out from Malaysia and left to fend for itself, the infant nation drew on its only resource - its hard-working people - to survive and thrive.

It charted a path of remarkable economic success, going from a Third World economy centred on entrepot trade to a thriving First World industrialised nation in just one generation.

Some call it the "swamp to skyscrapers" fairy tale.

This exceptional story of nation-building is bolstered by a few supporting narratives.

Helping the needy: 5 fresh fixes

A report released this week highlights the continuing problem of poverty in Singapore and suggests some ways to deal with it. Insight takes a closer look at the recommendations.
The Straits Times, 21 Mar 2015

AT FIRST glance, a gleaming city-state like Singapore may not look like it has many people who are starving, without a roof over their heads - that is, those in abject poverty.

After all, help for low-income households has been the overwhelming focus of recent policies like the Workfare scheme supplementing low-wage workers' incomes, and Silver Support payouts for the poorest elderly.

But despite these schemes, the issue of poverty and inequality is still a problem - just hidden, say some academics and experts.

A handbook on poverty issues released this week by the Lien Centre for Social Innovation (LCSI) has gathered suggestions from these experts on how to tackle the problem.

In the book, titled A Handbook On Inequality, Poverty And Unmet Social Needs In Singapore, they collate calls for policy changes in the Central Provident Fund savings scheme, education, taxes and wages.

The debate over the exact level and landscape of poverty here has been a long-running one, as Singapore - unlike Hong Kong, for instance - does not have a defined poverty line.

Prime Minister Lee Hsien Loong has said that a rigid poverty line might be polarising, and leave some outside the definition of poor.

Instead, Singapore needs several layers of assistance, as its groups of needy are shifting and multi-faceted, he said.

But social welfare groups argue that the true face of poverty is, ironically, hidden by some of Singapore's successes, such as widespread public housing.

The former chief economist of the GIC sovereign wealth fund, Mr Yeoh Lam Keong, estimates that there are about 110,000 to 140,000 Singaporeans who fall into the categories of working poor, elderly poor and unemployed poor.

Regardless of their positions in the debate, all recognise there are the needy and vulnerable who need help.

Whether Singapore can afford such policy moves to boost assistance-scheme payouts is a debate that society must have, say the experts.

Insight looks at five left-of-field measures proposed in the new book.