“An Inclusive Society, A Stronger Singapore” Budget Plan 2012-2016: fulfilled promises, financial burden and new directions
In 2012, the Singapore government introduced a 5-year budget plan aiming to make Singapore a fair, stronger and inclusive society. The main features of this ambitious project were:
- Restructuring to sustain growth
- Less dependency on foreign labour
- More grants and support for SMEs
- Building a fair and inclusive society
- Improving the social mobility of lower income families through improved financial and educational subsidy and/or grant schemes
- Helping seniors live long and well by offering housing purchase schemes, credit incentives for hiring aged workers, increased retirement savings and more affordable healthcare
- Supporting those with disabilities and special needs through subsidies for employing caretakers, providing educational and skills support facilities and building elder-friendly infrastructure
- Sharing the fruits of Singapore’s economic growth by giving out GST vouchers in cash, Medisave and U-save
(taken from http://www.singaporebudget.gov.sg/budget_2012/download/FY2012_Budget_in_Brief.pdf)
It is not difficult to understand why the government initiated such a plan. In the words of PM Lee “We all have something to contribute,” (channelnewsasia.com, 31 Oct 2015) hence maximising the potential of our human resource: young, old, poor, rich, abled and disabled, and keeping them healthy and happy is a strategic move to support Singapore’s future economic growth.
It is now 2017 and the government has indeed delivered most of what was promised in the budget plan. To highlight a few of these achievements, our neighbourhoods and transport systems are now more elder-friendly, we receive our GST cash vouchers as promised, we have two spanking-new hospitals in the West and are currently in the midst of integrating our healthcare groups to streamline operations and make healthcare more affordable, we built a $25million Enabling Village to help those with disabilities and special needs and we have decreased the local to foreign worker dependency ratio. However no success story is without sacrifice and just who or what were the sacrificial lambs in this budget plan? Moreover, which areas should the government focus on in the next one?
Tax payers are once again not spared from funding Singapore’s progressive aspirations and why should they? The money is redistributed and re-invested to make Singapore a fairer and stronger society. However tax rates have gone up again for YA2017 for the rich and upper middle classes, from a range of 17-20% to a range of 18-22% and with the addition of two new income tiers (www.iras.gov.sg). The question is, is this really fair? I heard that little “Yes!” go up in your head. Truth be told, it depends on how the rich make their money. For those who own successful local businesses, the new tax hikes are going to hurt and might even discourage further business growth or expansion. For those who make their riches through stocks and shares, guess what? These are not declared when filing income tax! Perhaps we should work towards minimising the number of those who profit from loopholes in the system if we truly wish to build a fairer – also towards the rich— and more inclusive society.
Finally, what new directions might we find in the AY2017 budget? The Committee on the Future Economy (CFE) of Singapore recently released a report highlighting key growth sectors and proposed seven strategies to sustain Singapore’s economy in the coming years.
Key growth sectors: finance, hub services, logistics, urban solutions, healthcare, the digital economy and advanced manufacturing
Seven strategies:
- Deepen and diversify international connections
- Acquire and utilise deep skills
- Strengthen enterprise capabilities to innovate and scale up
- Build strong digital capabilities
- Develop a vibrant and connected city of opportunity
- Develop and implement Industry Transformation Maps (ITMs)
- Partner each other to enable innovation and growth
(taken from https://www.gov.sg/microsites/future-economy/the-cfe-report)
One can therefore expect more money in the AY2017 budget to be channelled into re-skilling the workforce, encouraging innovation and improving digital infrastructure and technology i.e. building a Smart Nation. Support for the elderly, disabled and those with special needs might take on a minor role in the budget this year because it was the focus of AY2012-16’s budget plan.
Nonetheless, there is so only so much money can do in helping a country to survive. As pointed out by PM Lee, Singaporeans need to practice active citizenship. This means making the effort to keep oneself fit and healthy, using the incentives and support systems in place to reskill or retrain oneself to meet with changing labour demands, revising educational content to ensure our students are prepared for the future by the time they graduate and managing ones expectations and demands in times of economic difficulty. Policies, systems and budget plans will change but the brunt of it can be softened by adopting the right attitude and mentality. Thus when the AY2017 budget comes out, hold your tongue for a moment, understand the changes and safety nets in place and learn to embrace them. If not, a corner of Hong Lim Park beckons you.
