SINGAPORE: It would be a quick-acting pill to assuage the headache of rising food prices for the needy: Distributing vouchers redeemable at supermarkets and other food retailers.

But is a nationwide food voucher scheme — a possibility alluded to by the government when it announced that a $1-million scheme was on the way to help with rising food costs — the best stop-gap measure?

Community leaders say it is likely to be the best measure, although certain troubling questions will have to be addressed.

Food vouchers — usually from supermarkets such as NTUC FairPrice — are already disbursed by Community Development Councils (CDCs) and other groups to families on public assistance.

A scheme at the national level would bolster such grassroots efforts and provide immediate if short-term relief, some say.

North East District Mayor Zainul Abidin Rasheed told TODAY: "It would be more comprehensive and thorough, and it will assure residents all over Singapore access to the same value of help."

It would also be a rare, direct form of assistance from the government to deal with food costs, as opposed to more indirect measures such as GST credits. But who should get help and how much?

Member for Parliament (MP) Zaqy Mohamad of Hong Kah GRC said: "We already provide food vouchers to the lower-income group, so my question would be whether the criteria would include the lower-middle income group, who are also struggling with the higher costs."

Adding that he has seen requests for financial assistance go up over recent months among both the low and lower-middle income groups, Mr Zaqy said: "Since these are extraordinary circumstances, perhaps the solutions need to be broader and more creative."

MP Fatimah Lateef (Marine Parade GRC) said she has seen cases of those needing help go up from ten to 12 cases a month in 2006 to about 20 cases a month this year.

South West District Mayor Amy Khor stressed the "one-off" nature of the proposed assistance. Even so, would a handout of food vouchers, while seen initially as a gesture of government goodwill, lead to a sense of entitlement among Singaporeans during tough times?

Sociologist Tan Ern Ser, from the National University of Singapore, said: "Singaporeans could come to expect welfare to help them overcome financial challenges."

But since the amount given out in existing financial aid schemes "is relatively small, and the process of means-testing stringent, I doubt such measures would be enough to inculcate a handout mentality", he added.

"I believe the government would prefer this to be only an interim measure since the preferred approach is really to create well-paying jobs and enhance employability through skills re-training and upgrading."

Mr Zaqy agreed, saying: "It will be very important to manage expectations upfront and make clear the terms of the assistance. Even what you name the scheme will be important."

Alternative solutions beyond food vouchers could further encourage Singaporeans to switch to cheaper brands of what they currently consume, said Prof Tan.

Others also point out the need to safeguard the scheme against potential abuse.

"The thing about vouchers is that they are transferable, so you get these cases of people selling them for cash and using the money to gamble," said Bo Tien Welfare Services Society honorary secretary Benny Chua, whose organisation assists CDCs in food distribution. "Also, people might use the vouchers to buy liquor and cigarettes."

Nonetheless, given the circumstances, such assistance cannot be held back, said Mr Zaqy. "In the end, it's where the need is and whether you achieve your objectives."


- TODAY/so