By Leong Sze Hian
According to the article “Parliament: Transformation budget for future” published in My Paper on 5 March, the Finance Minister was quoted as having rebutted opposition MP Low Thia Khiang’s (Hougang) claim that the Government had depressed wages of lower-income citizens by letting in more foreign workers.
Mr Tharman Shanmugaratnam said: “By allowing the economy to grow rapidly in the second half of the (last) decade, we were able to bring unemployment down and grow the incomes of Singaporeans.”
Ample statistics were cited: the unemployment rate for residents fell from six per cent in 2003 to 2.4 per cent by end-2007; median income grew by 20 per cent over the decade after adjustment for inflation, while that of low-income households grew by seven per cent over the decade.
Firstly, is the seven per cent figure quoted for the lower-income households also adjusted for inflation?
To put things in perspective, the bottom quintile of households’ income declined by about 1.7 per cent per annum in real terms from 1998 to 2008. In 2009, median income dropped by a further 2.5 per cent in real terms.
In Parliament, Mr Tharman also gave an example of a couple in their mid-20s earning an income in the lowest 20 per cent bracket. Together, they earn about $1,500 a month, own a three-room flat and have two children.
The Finance Minister said that over the next 60 years, this family can expect help totalling about $460,000, after accounting for inflation. (Source: “No lack of help for low-wage workers”, ST, 5 Mar)
There is no detailed break-down of how the $460,000 is derived. How is the inflation adjustment done? For example, does it mean that a $1,000 benefit adjusted for inflation at two per cent may be counted as an increasing amount every year such that it will be $2,208 and $3,281 in the 40th and 60th year respectively? Are there any countries in the world that calculates social benefits to citizens in this way?
The mainstream media also reports that from this year’s budget, each Singaporean in the bottom 10 per cent of income earners will get $869 in benefits, including GST credits, living cost rebates and top-ups to CPF accounts.
Most of these benefits are not extra cash that can be utilised.
For example, Medisave top-ups can only be used for medical expenses.
Top-ups to Post-secondary school Education Accounts can only be used when the children enter tertiary education, by which time the increase in fees may be more than the top-ups
Only 29 per cent of Workfare is paid in cash with the balance 71 per cent credited to the CPF account (not the Ordinary Account).
GST Credits are to offset the GST increase and not extra cash per se.
Electricity tariffs, property taxes, and Service and Conservancy Charges have all increased over the years.
While there are course fee subsidies given for Workforce Development Agency-approved courses as well as bonus payments upon completion of training under the new Workfare Training Supplement scheme, how can we assume that the lower-income family will be able to find the time to go for such training?
On subletting concerns, National Development Minister Mah Bow Tan said that of the 682,000 flats that have fulfilled the Minimum Occupation Period (MOP) and are eligible for subletting, only 23,200 or three per cent are sublet, which suggests that most flat owners are buying their flats for occupation, and not rental.
However, according to the report “More turn to sub-letting HDB flats” by Channel News Asia on 9 November 2009, between April last year and March this year, the Housing and Development Board (HDB) approved 22,754 such applications, or 4,019 units more than in the previous year.
So, is it that only 23,200 flats are sublet in total, or 22,754 sub-let applications were approved in just one year?
Deputy Prime Minister Wong Kan Seng said that the Government hears and understands Singaporeans’ concerns about the influx of immigrants in recent years. So it has refined the requirements for permanent residents (PRs) and new citizens, even as it continues to take them in to top up Singapore’s declining population. As one indication, there were 59,500 new PRs last year, down from 79,200 in 2008, and 19,900 new citizens, compared to 20,500 a year ago.
However, with unemployment rising to an average of 87,000 in 2009 during Singapore’s worst recession, is it justified that the yearly intake of new PRs and citizens declined by only 20,300 or 20 per cent?
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Hi folks, i made up my mind already, that is not to trust papies. They can always twist and turn with their reply, churn up statistics, even add past years figures to be included to make it look good should the present datas sucks. Always remember the old chinese sayings “Those who serve as govt officers/mandarins has two mouth”.
so called generosity of the govt = suck more of your money:
example: Baby CDA account = put in money in, govt contributes BUT cannot take out
example: CPF top up for old people? Top up CPF amount first, put money in and never see it again
example: Differentiate between PR and citizen? Increase all hospital and school fees, only highlight the point that PR increase much more, much much more
Excuse me, Sylvia Lim’s father is the former press secretary of the DOM (the little emperor of Singapore) so, what do you expect from a “bitch” whom grow up drinking those milk provided by lky to stand up against her master to speak up for Singaporeans? She may be just a “mole” planted by lky to guide the ltk of worker party on the path and role of opposition party that lky aspires to have in Singapore! She may be also a “secret spy” works for lky to perform political espionage on the opposition parties!
Just to illustrate my suspicion, after lengthy vehement and vociferous on line discussions by the netizens regarding profuse influx of foreigners and prs to this little-black-mark, this little timid “slut” then question in the most recent parliament debate the wisdom of having so many foreigners residing in this tiny island, is she an opportunist or just an despicable actress of the “wayany” troupe to mesmerize and hypnotize the gullible and credulous main-street-men to seek political revenue? She is not any better than her political opponent grace fu who has gained more preferences from the DOM, “A” mountain can not has “TWO” tigers, with grace fu as the pet of the DOM Sylvia Lim can only recourse to the feeble and timid opposition party.
It is so sad yet so real! May “gods” forgive all this opportunists whom only know how to squeeze every single drop of support from the electorates under the guise of serving the people! So despicable yet always contemptible!
Why don’t they PV the $460k at 5% and I am happy to collect it now ! hahahhaha
Leong is right.. and what’s the probability of a typical family takng advantage of these monies? Hogwash..
I know all of you as citizens, want to know how the figuare,$460K is derived.
I know all of you as citizens,are interested in the welfare of the country.
BUT these are NOT valid reasons for me to reveal how the figure of $460K is configuarated!!
Just TRUST me the figuare is correct!!
Sounds familiar??
Hi, J. thank you for updating pledge
There is a version of the Singaporean pledge here:
http://mindbloggingstuff.blogspot.com/2010/03/new-singapore-national-pledge.html
We, the residents of Singapore, pledge ourselves as one united people; regardless of race, language, religion and nationality, to build a democratic society, based on depressed wages and income inequality, so as to achieve happiness, prosperity and progress for our ministers, whose salaries are pegged only to GDP growth.
Should remind everyone comes National Day 2010
regards
vincent
blue
Mar 8, 2010 11:03
so much so we should now spread the news of all these political liars to as many people as possible starting from your own immediate family members, friends, colleagues and even to those older folks who has been conned by those MIW all these years.
the more they (MIW) trying to cover up, the more we open up all their dirty deeds to the public awareness, already to my surprise there are still many folks out there who do not even know what has been happening around them, they only get information from their so-called MIW grassroot leaders everyday telling them how good the papies are all these years, never realise that all their cpf savings are actually disappeared into thin air.
I follow a general rule of thumb: when tharman speaks, i listen for what he did not say, not what he said. what he said is usually the things that he has been tasked to make you believe but what he did not say is usually the truth. Here are the following reasons why i adopt this stand:
1. He claimed in parliament that as second finance minister he was satisfied that Ho Ching did not break any law in thailand but thai national newspapers could detail the day-by-day progression of Temasek’s collusion with Thaksin’s wife to set up shell companies to facilitate the sale; up to the day Ho and mrs Thaksin shook hands. the BKK Post article named the high ranking pple in Temasek and Shin Corp involved, the dates, the location, and the deal in chronological order. So if Thaksin and wife is guilty of breaking Thai law, why isnt Ho guilty? If Ho is not guilty, she should have sued the BKK Post.
2. Tharman said in parliament Govt not involved in GIC decisions. But half of GIC’s Board of directors are ministers including himself. This is something i really cannot understand: The board of directors under the law are ultimately responsible for the company. I am a director and and have to always be very careful because i have to answer. so if half the board of GIC is not involved in GIC, then how can the board be accountable? Unless half the board of GIC is there for show, how can the board of directors not be involved? Big question mark here.
3. Tharman’s classic statement on the use of reserve based on ‘Trust’. Every company who goes through ISO will tell u that ‘trust’ is only for family business and provision store. Any entity bigger than that needs processes and accountability. so is singapore a family business?
How does singapore rank in the world , past present and future, in terms of :
1. Level of TRUST in the Gonmin?
2. Cooperativeness with the Gonmin?
3. Believingness in the Gonmin?
4. Non-demandingness of how numbers are derived?
anyone knows the answers?
would world politicians love to lead this world class citizens?
Dont trust anybody.
LKY ate his pride and worked for the Japanese during WWII, can he be trusted?
*lefleche Mar 9,2010 22:19*
Very well observation.
Just to add a little bit ….
Productivity, Quality and Accountability are equally important.
Not only they are not contradict to each other.
Cases of Jap Car problems tell us a lot ….
The combination of FACTORS give us the true picture.
And not just productivity alone or soley focus on reducing cost.
market2garden