Are Singaporeans Better Off?

The issues of the day – high unemployment, aging population, asset inflation have become global problems inflicting on governments everywhere. US’s unemployment rate stayed stubbornly high at close to 10% and with their financial crisis taking a toll on everyday living, US is unlikely to crawl out of its doldrums in the near future without having to devalue its own currency to banana republic status.

Japan, previously the world second largest economy after US, with all its engineering prowess, and diligence has a standstill economy with flat growth.

China, after displacing Japan as the second largest economy, also exhibit the same vulnerabilities – aging population, asset inflation beyond real affordability. In China, land right is not the same as in most democracies – the land does not belong to anyone and but owner has the right to use. Its property lease are usually 60-70 years and even with such short lease, prices in the main cities of Beijing and Shanghai or even cities in Qingdao, Shangdong or even the Southern city of Hainan, property prices shot beyond our mid range housing in Singapore based on cost per square feet. In terms of earning power of their average citizen, the disparities are too great to imagine.

I look everywhere in Asia, Europe and even in US, such are the pathetic state of affair and in Singapore, with our growth outstripping many other economies, we must admit that our working class Singaporeans are somewhat left steps behind and income levels have seen very modest improvements, if at all. Workfare must be featured more prominently in any budget allocation as a mean to bring up the buying power parity of our working class Singaporeans. On their own, they are suffering silently and this much the Government must recognize. The allocation for Workfare does not put much cash on the table for the recipients and the Government should look into how discretionary allocation should be made to these families so that they will not have problems buying food and staple for the families, putting their children to school and having sufficient for transport and medical care.

Though, the Government has strongly rejected any notion of minimum wage since they do not add to any productivity gains but in fact may raise the cost of employers. We have seen examples – where minimum wage distorts hiring patterns and creates new employment contracts – interim, short term arrangement because employers are afraid of any long term employment with minimum wage that will not be easily rescinded without options of pull back in poorer times. This is a sensitive labor matter but it must be looked upon seriously as it affects all working class Singaporeans. If implementation of minimum wage is not doable, what can the Government do to level up? Enhance Workfare with entitlements for so long as any working class Singaporeans continue to work or want to work.

There are many issues bothering everyone – from transport to education to housing and these are matters that affect us one way or another. The Government must show that it cares and not deny any citizen or Singaporean, our right to better living, even if we are better off than others elsewhere in the world and for our aspirations to be met in our own Singapore way.