Singapore's wealth divide widening
SINGAPORE (Reuters) -- For years, Singaporeans measured success by
"the five Cs" -- cash, car, condominium, credit card and club
membership.
But such trophies, especially condos, remain firmly out of reach
for many Singaporeans.
While Singapore is the wealthiest country in Asia after Japan in
terms of gross national income per capita, it is grappling with a
widening income gap that puts it alongside countries such as
Burundi and Kenya in terms of income inequality.
The 2007 budget issued on Thursday is expected to tackle such
disparities through government handouts to poorer workers after a
report released this week showed that 19.3 percent of Singaporean
households earn less than S$24,000 ($15,600) a year.
"The five Cs used to be an aspirational goal," said Colin Goh,
whose award-winning feature film "Singapore Dreaming" showed how
such aspirations can shatter family relations.
"Now, Singaporeans regard them as essentials, and if you're of a
certain class, practically an entitlement. Having the five Cs is no
longer a sign of attaining entry into the elite. Rather, the
absence of the five Cs indicates one's inadequacy," he said.
Exclusive clubs
True, some of the Cs have become more attainable.
Banks, increasingly eager to earn fat fees from consumers, are
falling over themselves to offer cash advances and credit cards,
although in the case of DBS, the country's biggest bank, customers
need to have an annual income exceeding S$30,000.
Prices for club memberships and cars have also declined. But the
entrance fee for the 160-year-old Tanglin Club, a relic of the
colonial era, still costs S$20,000.
Moreover, exclusivity matters.
A few years ago, some people who had signed up to join Raffles Town
Club sued when they discovered that the club had let in many more
people than they had been led to believe, making it far less
exclusive.
Even the two magazines which cater to the city-state's affluent --
Prestige and Singapore Tatler -- got into a legal spat over which
was the market leader when it came to reaching the rich and
famous.
Condo crazy
Perhaps the most desirable of the five Cs is the condo.
Demand for these is so hot that long queues form outside the sales
offices at new apartment launches.
Potential buyers are willing to pay as much as S$4,000 just to have
someone line up on their behalf; others sleep on the pavement
overnight to ensure a place near the front of the queue.
Entire blocks of luxury flats sell out in a matter of hours at the
top locations, including a refurbished complex consisting of twin
towers -- one in gold, the other in silver.
Last year, prices for uncompleted apartments in prime districts
surged 25 percent amid frenzied buying from wealthy Singaporeans
and foreigners.
"Home to 46 of the most luminous families" is how developer Sime
Darby describes its luxury condos -- which cost up to S$5 million
(US$3.25 million) each -- on a streetside billboard.
For that, residents can use an infinity pool, sky gym, and
spa-in-the-sky, and are close to "prestigious residential
neighbors, elite schools, notable five-star hotel, [and] exclusive
private clubs," according to its web site.
Homeless
Yet the majority of Singaporeans live in government-built Housing
Development Board, or HDB, apartments where there is less scope for
making such big investments gains.
These homes are built to a high standard and, in terms of
amenities, are vastly superior to some of the public housing
available in the United States and Britain.
"Public sector housing prices haven't moved very much, it's
stagnant, which means that it's difficult to realize capital when
you are retiring," said Chua Beng Huat, an academic and authority
on Singapore's housing policy.
Just how difficult that is can be seen on Singapore streets, where
it is increasingly common to see elderly people trying to make some
money by selling small packets of tissues or cleaning tables in
cheap eateries.
The Straits Times newspaper reported last month that some
Singaporeans were so poor they could not even afford public housing
and were therefore homeless.
"It's definitely a problem that the bottom half of the population
where the income growth has been very very weak, these people are
extremely vulnerable to economic restructuring and these are the
people who really do need help," said Manu Bhaskaran, an economist
at Centennial Group.
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http://edition.cnn.com/2007/WORLD/asiapcf/02/14/singapore.inequality.reut/index.html
