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The Singapore system is not perfect, but it is one of the most vulnerable in the history of poverty and vulnerable families, the Ministry of Social Development and Family Development (MSF) said in a first-of-its-kind report released yesterday.
But the country is now at a crossroads, with the pace of economic development and demands for social spending increasing, as the society is aging, the report said.
"We have to adapt to new policies and needs," he added.
The report outlined how sustained efforts over the years have been improved for the low income – with more of their own homes and poorer families making it to tertiary education.
"But the goal is to ensure that stratification is not enshrined and social mobility continues to be pursued," the report said.
"We will keep studying fresh ideas and approaches, including those from other societies, and try them out where they promised, to help improve Singapore and the lives of Singaporeans," he said.
"But we must not forget that trade-offs are unavoidable in social policy, and all too often."
Social inequality and mobility have dominated the national discourse in recent weeks.
For example, at the Institute of Policy Studies (IPS) event on Oct. 25, Deputy Prime Minister Tharman Shanmugaratnam said Singapore would be more difficult to achieve this goal because of the nature of a meritocratic system.
"Those who are trying to help their children do not have a chance of finding a better life," he said.
A key step in tackling income inequality is to ensure that everyone – including those in the middle class – continues to progress, he said, giving the analogy of being on an escalator that has to keep moving so that everyone is better off.
TRADE-OFFS UNAVOIDABLE
We must not forget that trade-offs are unavoidable in social policy, and all too often, good intentions have led to counterproductive results.
MINISTRY OF SOCIAL AND FAMILY DEVELOPMENT REPORT
Education Minister Ong Ye Kung made a similar point on the meritocracy on a separate event on Oct 24.
Still, when it comes to educational progress, the results are encouraging, according to the 31-page paper.
For instance, nine in 10 students from the bottom 20 years ago, 15 years in the past.
In addition to employment, the position of the employer and the employer, the position of the employee is
It said employment rates for Singaporeans and permanent residents, including older workers, have risen in the past decade. For workers aged 65 and older, the employment rate rose from 14.4 per cent in 2007 to 25.8 per cent last year.
The Workfare Income Supplement has been one of the most effective schemes in getting people, especially older workers, to work, it noted. It encourages low-wage workers to work, by providing Central Provident Fund top-ups and cash supplements.
More poor families are also moving out of their homes, and this is being made possible by significant housing subsidies and flats.
There were about 500 such families in 2013, and this doubled to almost 1,000 households last year.
The number applying for a flat has also fallen by 44 per cent in the same time period.
Using the Organization for Economic Cooperation and Development, Singapore's Gini coefficient, after taxes and transfers, fell from 0.388 in 2007 to 0.356 last year. The Gini coefficient is a measure of inequality; the lower score, the more equal a society.
The report said the Government will continue to invest in Singapore, to help them meet their personal needs, and to help them with their medical expenses, among other plans to support low-income Singaporeans.
An MSF spokesman said the report is the Government's contribution to the ongoing social discourse on helping the poor and vulnerable.
She added: "We hope the paper will be a useful context for deeper conversations and actions on the way forward.
Mr Leonard Lim, an IPS research associate, said Singapore's Gini coefficient, after taxes and transfers, is comparable to the United States – a testament to the Government's efforts to redistribute income.
He added: "Education is the engine that powers social mobility.The moves to intervene early in education are more important to me than they are an indication that this government is intent on breaking any significant cycle of inter-generational transmission of poverty."
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