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Singapore

Social support not just about handouts but 'giving people a leg up', says DPM Wong

Singapore is spending more on social support in this Budget, especially on structural schemes and not temporary measures, says the Deputy Prime Minister.

Social support not just about handouts but 'giving people a leg up', says DPM Wong

A view of an HDB block of flats in Singapore. (File photo: TODAY)

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SINGAPORE: Social support is “not just about giving handouts”, but giving people “a leg up”, said Deputy Prime Minister and Finance Minister Lawrence Wong on Wednesday (Feb 28). 

In his closing speech for the Budget debate, Mr Wong stressed that Singapore is spending more on social support in this Budget and that a substantial portion is spent on structural schemes, not temporary measures. 

Some Members of Parliament (MPs) would like the government to do even more, but other members have cautioned the government to proceed carefully, to avoid breeding a sense of entitlement, dependency or undermining individual responsibility and self-reliance, he added. 

“We are very careful about getting this balance right. We have not changed our ethos of social support. It is not just about giving handouts, but it’s about giving people a leg up,” said Mr Wong.

The ComLink+ and SkillsFuture Level-Up programmes have been designed so as not to erode personal and family responsibility, he added. 

Under ComLink+, lower-income families can receive financial top-ups when they make progress on long-term goals, working with family coaches. There are four packages, each geared towards preschool education, sustained employment, financial stability and saving for home ownership.

The preschool education package will be the first to be implemented in the second half of 2024, and the other three will be launched from 2025.

With the new SkillsFuture Level Up Programme announced by Mr Wong on Feb 16, Singaporeans aged 40 and above will receive an additional S$4,000 in SkillsFuture credit. Younger Singaporeans will receive the same amount when they turn 40.

This top-up can only be used for selected training courses, including part-time and full-time diploma, post-diploma and undergraduate programmes, as well as courses in the Progressive Wage Model sectors.

“We catch Singaporeans when they fall and we make sure they do not fall behind. We invest in them and we provide them support to bounce back from life’s setbacks and do even better for themselves,” said Mr Wong. 

He noted that lower-income groups in Singapore have progressed faster than others. 

Real incomes of the bottom 20 per cent increased slightly faster than the middle-income, and twice as fast as the top 20 per cent, said the Deputy Prime Minister, noting that this does not take into consideration Singapore’s tax system that “favours the lower income”. 

“We will not stop here. We will continue to work hard to keep on improving,” he added. 

“We learn from other countries and we are open to all ideas – from MPs, researchers and community advocates. That is the spirit of Forward Singapore. We will consult widely and make bold and effective changes to take Singapore forward.”

"NO ONE HAS A MONOPOLY ON IDEAS"

The government will continue to provide more information to facilitate informed discussions on policy, said Mr Wong, noting that many MPs from both sides of the house have “laid claim” to the policy shifts announced in the Budget. 

“We welcome all who wish to associate themselves with these forward-thinking initiatives. Because in truth, no one has a monopoly on ideas,” he added. 

There will be more opportunities for ground-up and civic engagement, with more platforms for individuals and groups to contribute meaningfully, and not just through feedback sessions.

These include youth panels or citizen panels where participants can play active roles to help create and update policies, said Mr Wong. 

“And in the end, the real work is about translating ideas into effective policies that work for Singapore. That’s our test. Is it effective?” he continued. 

“We all want better wages, better assurance, better security for our people. But what is the effective way to achieve these goals? How do you pay for them? How do you guard against inadvertent consequences?” 

Singapore does not “blindly copy” policies, but learns from others and adapts these policies to its needs, said the Deputy Prime Minister. 

“That’s how we have innovated massively on the social front, as we have on the economic and financial front.” 

EMPLOYMENT MEASURES

Addressing MPs who spoke on the upgrades to the SkillsFuture programme, Mr Wong noted that the new additions are significant, and Singapore should first make this move before considering how to further enhance the scheme. 

The government is also working on the new support scheme for those who are involuntarily unemployed, as part of enhancements to the SkillsFuture scheme, he added. 

This will be targeted at involuntarily unemployed workers in the lower- and middle-income groups.

“We will provide them with temporary financial support and encourage these individuals to go for training if needed, or to get matched to new jobs.” 

The government considered making this an insurance scheme, but for that to work, it would require universal enrolment, he noted. 

If the scheme is mandatory, it would require contributions from employers and employees, which will add to business costs that companies and lower-income workers are already worried about.

“That’s why we have decided to fund the scheme using taxes instead. In other words, all of us as taxpayers and the government will help you bounce back if you face unemployment setbacks.” 

The government is also “paying close attention” to Singaporeans who have the potential to take on leadership positions in multinational enterprises, said Mr Wong, adding that it wants to nurture and grow this pipeline of leaders. 

When looking for suitable candidates, companies typically look for those who have already spent substantial time managing overseas operations, he said. 

This means that Singaporeans who want to be considered for these positions must be prepared to be posted overseas even when they have other family commitments.

The government is reviewing this and considering how it can provide more support for Singaporeans in these situations, said Mr Wong. 

In the recent Forward Singapore exercise, most Singaporeans expressed the idea of a “refreshed” Singapore dream, said Mr Wong. 

“To be clear, it does not mean that Singaporeans have given up on material goals, but they want to avoid getting trapped in an endless rat race of hyper competition,” he added. 

“They want to find meaning and fulfilment in what they do, beyond material success. I think these are noble aspirations.” 

He noted that these aspirations are more common among those born after Singapore’s independence than before. 

“As part of Forward Singapore and as a first step in this Budget, we are doing more to help our fellow Singaporeans realise these shared aspirations by providing more opportunities and diverse pathways for everyone to excel, to develop to their fullest potential, and to be the best possible version of themselves.”

Source: CNA/hw(mi)
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