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Rising cost of living dominates pre-Budget feedback sessions
By Julia Ng, Channel NewsAsia | Posted: 13 February 2008 1853 hrs

 
 
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SINGAPORE : Many participants at dialogue sessions held ahead of Friday's FY2008 Budget Statement have brought up issues on the cost of living, and how the government can help Singaporeans cope with inflation.

There were six sessions held between last October and early this month.

The public was also encouraged to send text messages to the government feedback gathering unit, REACH, ahead of the Budget announcement.

REACH said over 300 people from all walks of life had participated in the pre-Budget discussions.

Among their requests were higher rebates for service and conservancy charges and more generous offset packages to help the poor and elderly cope with rising costs of healthcare and transport.

Members of Parliament (MPs) also agreed that there is room for the social safety net to improve, especially in its outreach.

Mr Liew Ah Yap's family survives on a monthly handout of S$490.

The 79-year-old takes care of his asthmatic wife, a middle-aged son who can't work because of his mental illness, as well as a teenage grandson.

Mr Liew's family receives free meals for lunch and dinner, thanks to the Moral Society Charities.

Despite help from community groups, most Public Assistance (PA) recipients have said it is still a constant struggle to make ends meet.

Under the current system, single needy adults each receive S$290 a month. Married couples, like the Liews, get S$490.

For the Liew family, about S$50 goes to paying for the rental of their one-room flat and conservancy charges. The family spends over S$100 on basic necessities like bread and Milo for breakfast, and over S$100 on utilities.

Besides their grandson, the elderly couple also has to support their son, who is receiving free medical treatment at the Institute of Mental Health for depression.

Being on the PA scheme means that they get free medical care and transport allowance when they go for their medical check-ups.

Mr Liew cannot supplement his income with odd jobs. PA recipients could be stripped of their handouts if they are found to be earning income on the side.

He said: "If you're on welfare, you cannot work, not even part time. Even if I want to work, I can't. If they allow those on welfare to do part-time work, I could still try to supplement my income. But my leg is so bad that no one will employ me. I can't work."

The recent price increases of food and utilities have hit the family hard.

Although the family tries its best to cut down on consumption, such as leaving the fans and television off, there is still a limit to how much they can save to make ends meet.

In fact, the family now owes over S$400 in utilities arrears, and they are counting on interim help schemes at the Community Development Council, and some generosity from the government, to help them tide things over.

The government's approach on social support has always been to help those who can work to remain employed and earn better wages.

However, MPs have said that with a rapidly ageing population, more will need support. And this is not because they do not want to work, but they may be too sick, or old and frail, to do so.

Halimah Yacob, MP, Jurong GRC, said: "We don't want to erode the work ethics and that's very important. But we have to increasingly acknowledge the reality - the population is ageing very rapidly and there are more sufferers of chronic diseases, and so we are gradually having to grapple with a different set of problems.

"If you look at the number of PAs, it's only 3,000 - out of a population that has grown significantly to 4 million people. So... (this) means our criteria for PA is very stringent and not many people can qualify." Thus, some have called for the PA scheme to be tweaked.

Madam Halimah said: "Between a PA on long-term assistance and short-term schemes... if you don't want to... liberalise the PA cases so that more people are eligible for long-term assistance, then you have to look at how to make it a lot more flexible, for those who (do not really need long-term assistance), but need a lot more medium-term support in financial assistance.

"I certainly hope that when we review the scheme, we'd also look at those who earn more than S$1,500, up to less than S$2,000. They also are facing difficulties. Not all the help schemes are open to them. They also struggle - especially when you're the sole breadwinner."

Others feel that it is not about giving out more money. It has to do with expanding the reach to make sure that the needy know where they can go to, to get help.

Even as the government said it is prepared to be generous, many have said assistance must be more targeted.

Dr Amy Khor, Chairman of REACH Panel, and Mayor of South West CDC, said: "Rising costs of living is a genuine concern. There's room for the government to dish out more help. But it has be targeted and judicious, so that we put the money where help is genuinely needed, and it will help the low-income to also eventually become self-reliant.

"Targeted in terms of specific help schemes, say in terms of education, in terms of helping them cope with specific expenses, so utilities rebates in terms of conservancy, and so on, will be helpful.

"In fact, if you give utilities rebates, and rebates for conservancy charges, more can be given to the low-income, but some can also be given to the sandwiched class who are also asking for a certain amount of help. It will help to reduce this crutch mentality.

"So I think there ought to be a balance between cash handouts and targeted assistance. And actually more targeted assistance would be useful, because if you put in more money to help them in terms of education, in terms of raising the children, that's really to help them cope for the long term and it's not just a one-off, short-term kind of assistance."

Given the high inflation rate, Dr Khor agreed with Madam Halimah that the government could consider raising the current income ceiling of S$1,500, so that more low-income families could qualify for assistance.

For the Liews, even if they do not get more cash handouts, their grandson is likely to be awarded a bursary, for his polytechnic education. - CNA/ms

 

 



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