A willingness on the part of the government to make substantive inroads against relative poverty could be signalled by initiating a non-contributory, budget-financed but means-tested basic social pension to work alongside the CPF system. Estimates by fiscal economists suggest that such an arrangement is unlikely to be a heavy burden on the fiscal budget: assuming benefit levels at 20 per cent of the annual median wage income with universal coverage, the cost is expected to be less than 2 per cent of GDP. Fiscal surpluses averaging 6.2 per cent of GDP over 2000–13 suggest there is ample fiscal space available for such an initiative. Singapore’s location-based growth strategy has also come under scrutiny. The strategy rests on policies that include keeping the wage share of income below capital’s share at around 42 per cent of national income; relying extensively on foreign workers at both low- and high-skill levels; and giving greater weight to commercial concerns over the provision of social amenities. The perception that the current balance is too heavily tilted towards commercial concerns seems to be contributing to a call for full public ownership and management of Singapore’s Mass Rapid Transit (MRT) system. The bus drivers’ strike of 2012 and the recent riot by foreign workers also suggest that a shift towards greater fairness and distributive equity should be considered. Politically, Singapore’s policymakers will be increasingly required to continue their current business-location growth strategy while meeting the expectations of an affluent and rapidly-ageing society. Singapore’s citizenry increasingly expects equitable as well as raw growth, and broad ranging welfare and public good provisions. In Singapore, still growing strongly, resists social transformation by Mukul Asher and Chang Yee Kwan
Posted on: Mon, 11 Aug 2014 03:53:33 +0000