Rich Singapore resists welfare reforms

Posted by Simon Montlake under Policy Watch on 24 January 2010

The recent recession has exposed the vulnerability of Singapore have-nots. Critics say the city-state should provide a better social safety net.

Rich Singapore resists welfare reforms

5 January 2010

For decades, Singapore's government has sought to script the lives of its citizens, earning a reputation as an authoritarian democracy that delivers the economic goods.

On paper, it has become wealthy in nominal terms, per capita income was $39,000 in 2008, on par with Japan and has the highest rate of home ownership in the world.

But over the past year, deep recession has exposed the vulnerability of those left behind. Though headline growth has recovered, job creation is lagging, with 5 percent unemployment in September. That's the highest level since 2003, when the SARS (severe acute respiratory syndrome) epidemic took a toll on Asia travel.

A common refrain here is that while the country is rich, ordinary Singaporeans are not. Critics point to a widening income gap, stagnant wages at the bottom, and competition from low-paid foreign workers as reasons why the economic gloom has yet to lift, even after the recession officially ends.

Another factor is that Singapore's government, despite its interventionist zeal, is stingy when it comes to welfare spending. It is at pains not to describe its social programs as welfare, which smacks of free lunches and laziness. As a result, workers here have no right to unemployment benefits and only the most destitute can apply for short-term financial aid.

Critics say the system is cumbersome and inequitable. "More and more people are finding it hard to make ends meet. This filters down to create problems in society," says Leong Sze Hian, a financial adviser and blogger.

Government officials argue that European-style welfare systems would undermine Singapore's work ethic, be abused by claimants, and become a burden on taxpayers. Instead, the government focuses on workfare training and top-up schemes, and gives grants to specific categories of needy citizens, including deprived students and low-income elderly.

In a written response, the Ministry of Community Development, Youth and Sports (MCYS) said such schemes are designed as a "springboard" to self-reliance. "Our measures are calibrated and targeted so that help goes to those that need them most," it said.

Stringent questioning for welfare-seekers

Last year, Jessie Roobalosani fell into that category. A mother of three children, she became homeless and wound up in a government-run shelter after leaving her alcoholic husband. She now lives with her mother, stepfather, and three children in a one-bedroom apartment in a public housing block, one of hundreds that line Singapore's tidy streets.

Six months ago, Ms. Roobalosani found a job as a baggage scanner at Singapore's Changi airport. That took her off the welfare roll, so now she struggles to pay the bills from her $535 monthly salary. Her mother was recently hospitalized with a stroke and is no longer around to take care of her two young sons while she's at work.

Sources and Relevant Links:

The Christian Science Monitor Rich Singapore resists welfare reforms 5 January 2010

Blowin' In The Wind Singapore: 5.9% or 116,300 are jobless 01 December 2009

CNA Job losses in recession-hit Singapore 04 June 2009

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