SINGAPORE: Challenges of dealing with a widening
income gap in Singapore are here to stay, say political watchers
and economic analysts, while MPs say the key to narrowing the gap
is up-skilling low-wage workers.
They were responding to the Prime Minister's New
Year's message which highlighted the issue.
Singapore experienced strong growth in 2010, and
economists say one group likely to benefit is the high income
earners.
CIMB regional economist Song Seng Wun said: "As a
result of the very strong growth, what you normally find is that
the top 20 per cent of income earners will generally ride on the
growth and benefit from it far more than the lower 20 per
cent.
"Benefiting them are things like wealth from appreciating assets
such as properties, whereas in the lower income group, you do not
have that kind of appreciation of asset.
"If you're... in the bottom 20 per cent (group), your salary is
relatively stable (but) you're only getting that much, whether
(the) economy is growing 15 per cent or four to six per cent.
"(But) if you're (in) the top 20 (per cent group), you'll likely
ride (on) the growth and the kind of opportunity that presents much
more than a bottom 20.
"... As a result after an exceptional year, you do find that income
gap will widen very significantly. Perhaps with a return to
normalcy, we will see a little bit of return in the gap
itself".
Some of the issues which Singaporeans are always concerned about
include inflation and the cost of living.
These can be a perennial concern for the lower income group.
MPs whom Channel NewsAsia spoke to say they intend to raise this
issue during the Budget debate and will be calling on the
government to extend whatever support it can to help lower income
Singaporeans.
And this is where Workfare -- a key pillar of Singapore's social
security landscape to provide support for low-wage workers so they
have the best chance to progress -- comes into play.
MPs say the Workfare has been a great help in encouraging workers
to be gainfully employed, to benefit from the payments.
MP for Jalan Besar GRC Denise Phua said: "What we need to do is to
move from these broad-based strategies to more targeted help, for
example, specific industries and specific segments of low wage
workers.
"(We can) then hone in...and understand the low wage workers'
families, so (as) to make sure that (the) poverty spiral can be
broken.
"One area to target is to ensure that children from low-wage
families have specific support in terms of tuition (and having
access to) computers, to make sure they can be pulled out from the
poverty spiral.
"We have sufficient numbers of helping agencies (such as) the CDCs
(and) the family service centres. What we need to do now is to
tighten the coordination of these helping agencies to make sure
that help indeed reaches those who need to be helped."
GPC Chair for Community Development, Youth and Sports Seah Kian
Peng said: "One part is to keep the economy running and booming
like what it is now, just like what we have experienced last
year.
"What it means is that unemployment is very low and we know that
the majority of people are earning a salary and as the economy
booms, the government will be in a position to also, in any budget,
consider how it could possibly distribute and share the growth with
as many Singaporeans as possible.
"The other part is rallying the community (including) those who
have done well and are successful, (to) make life better for those
(who are) not as successful.
"Singaporeans are, by and large, a generous lot; corporate
philanthropy is there and I hope individual philanthropy will also
be on the rise".
Meanwhile, MPs say they will urge the government to continue with
measures already in place, like the GST Credits and various
rebates, to help low income Singaporeans.
-CNA/wk
