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Singapore Govt challenges “Minimum Income Standard 2023” report’s representation of basic needs

The Singapore government has responded to a recently published report on household income requirements, stating it may not accurately represent basic needs. Instead, it’s a reflection of “what individuals would like to have.”

This follows the “Minimum Income Standard 2023” study, which suggests a 5% increase in previous income estimates, of the basic standard of living in Singapore.

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1 year ago

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SINGAPORE: The Singapore government clarified on Thursday (14 Sep) that a recent report suggesting minimum household income requirements amid inflation “might not accurately reflect basic needs”. Instead, the findings should be seen as “what individuals would like to have.”

The clarification was part of a joint statement from the Finance Ministry (MOF), Manpower Ministry (MOM), and the Ministry of Social and Family Development (MSF).

The recently published report, “Minimum Income Standard 2023: Household Budgets in a Time of Rising Costs,” unveils figures detailing the necessary income households require to maintain a basic standard of living, using the Minimum Income Standard (MIS) method.

This method establishes universal basic needs by amalgamating diverse views and opinions. It aims to achieve consensus from ordinary members of society across different backgrounds and then translates these perspectives into precise household budgets. This determines the cost of a basic standard of living in Singapore.

The study, spearheaded by Dr Ng Kok Hoe of the Lee Kuan Yew School of Public Policy (LKYSPP), builds upon research initiated in 2019 using the MIS method. It specifically focuses on working-age households in 2021 and presents the latest MIS budgets, adjusted for inflation from 2020 to 2022.

It suggests figures up to 5% higher than previous estimations.

The report detailed that:

  • The “reasonable starting point” for a living wage in Singapore was S$2,906 a month.
  • A single parent with a child aged two to six required S$3,218 per month.
  • Partnered parents with two children, one aged between seven and 12 and the other between 13 and 18, required S$6,426 a month.
  • A single elderly individual required S$1,421 a month.
  • Budgets for both single and partnered parent households averaged around S$1,600 per member. Given recent price inflation, these figures have risen by up to 5% in the current report.

The joint statement inferred that the proposed monthly MIS budget of roughly S$1,680 per person aligns more with the average monthly expenditure of S$1,650 for families with children than with fundamental necessities.

The joint statement also highlighted that the report factored in luxury items such as jewellery, perfumes, and overseas holidays when estimating minimum income standards. Because the study’s focus groups included higher-income participants, its conclusions might not accurately mirror basic necessities.

Addressing the holistic definition of a basic standard of living in Singapore proposed by the report’s authors, the ministries responded, “This is what individuals would like to have.”

The ministries expressed concern that the report might exaggerate minimum income while downplaying government support, particularly for lower-income households. However, they acknowledged the report provides valuable insights into Singaporean aspirations.

The 2023 MIS report proposes three significant income reforms: introducing a universal wage floor, revising the Central Provident Fund (CPF) model to better serve the elderly, and pegging assistance amounts to current inflation rates.

Several observations were also made regarding wage work feasibility during specific life stages and the importance of public initiatives like cash transfers and retirement income policies. Within CPF, modest increases in retirement sums reportedly made a minimal impact on retirement income adequacy.

The ministries, while supporting the intent behind the reforms, expressed reservations about the universal wage floor, citing potential job loss risks, especially if positions could be automated.

Efforts to expand the Progressive Wage Model (PWM) were highlighted, indicating future wage increases for sectors like retail and cleaning.

The ministries acknowledged the existing CPF system’s limitations, especially for lower-income workers. Initiatives like the Majulah Package and Silver Support and Workfare were cited as ways to address these gaps.

The ministries reiterated their commitment to ensuring support schemes stay relevant, highlighting recent ComCare scheme adjustments, and noting that the government regularly reviews its scope and coverage of assistance to ensure it is relevant and adequate.

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Crime

Singaporean fugitive deported from Thailand, to be charged with drug trafficking

A Singaporean fugitive arrested in Thailand, was deported to Singapore on 19 September 2024 and faces drug trafficking charges. Authorities expect him to face the death penalty under Singapore’s tough drug laws for running a smuggling operation between Thailand, Australia, and Singapore.

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2 hours ago

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19 September 2024

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A 31-year-old Singaporean man, wanted for drug trafficking offences, was arrested in Thailand and deported to Singapore on 19 September 2024.

The fugitive, identified as Benny Kee Soon Chuan, was apprehended by Thai police at his residence near Bangkok’s Suvarnabhumi Airport and will face charges in court on 20 September.

Kee, described as a high-level trafficker, ran a smuggling operation that trafficked crystal methamphetamine, ketamine, and Ecstasy to Australia and Singapore using Thailand as a transit hub, according to Pol Lt Gen Panurat Lakboon, secretary-general of Thailand’s Office of the Narcotics Control Board (ONCB).

Cross-Border Investigation and Arrest

The Central Narcotics Bureau (CNB) of Singapore had issued an arrest warrant for Kee following investigations into two drug trafficking cases in December 2020 and November 2022.

He had been on the run since 11 April 2016, prompting CNB to collaborate with its international counterparts, including the ONCB. Thai authorities were tipped off by CNB on 12 August 2024, and after weeks of investigation, Kee was apprehended on 17 September.

Thai immigration officials revealed that Kee had entered Thailand earlier in 2024 using a Vanuatu passport.

Following his arrest, Kee’s Thai visa was cancelled, and assets worth 15 million baht (S$585,000), including luxury watches, gold pieces, and a luxury car, were seized during a raid on his residence in Samut Prakan.

Lt Gen Panurat confirmed that the fugitive had been living an affluent lifestyle in Thailand despite lacking legitimate employment.

Links to Broader Drug Network

Kee is believed to be linked to other Singaporean traffickers involved in the smuggling of drugs from Thailand.

In March 2021, Thailand’s Anti-Trafficking in Persons Task Force (AITF) intercepted packages containing Ecstasy and ketamine destined for Singapore, as well as crystal methamphetamine bound for Australia.

Two other Singaporean men, aged 21 and 29 at the time of their arrests, were later sentenced to imprisonment and caning in Singapore for their involvement in these operations, which were connected to Kee’s trafficking network.

Death Penalty Under Singaporean Law

Kee’s deportation to Singapore brings him under the jurisdiction of Singapore’s severe drug laws, which prescribe the death penalty for those convicted of trafficking substantial amounts of controlled substances.

Singaporean authorities have indicated that he could face the death penalty under the country’s strict drug trafficking laws. Pol Lt Gen Panurat indicated that Singaporean authorities are expected to seek the maximum penalty for Kee’s alleged offences.

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Arts & Culture

Epigram Books to close SAM bookshop amid low sales and footfall

Epigram Books will shut down its bookshop at the Singapore Art Museum on 26 January 2025, citing low sales and foot traffic. The independent bookstore, known for supporting local authors, will continue to operate its online store, but its future in brick-and-mortar retail is uncertain.

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2 hours ago

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19 September 2024

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Epigram Books, a major supporter of Singaporean literature, will close its Epigram Coffee Bookshop at the Singapore Art Museum (SAM) on 26 January 2025.

The decision comes after years of struggling with low sales and foot traffic at the Tanjong Pagar Distripark location, marking the end of the bookstore’s three-year lease.

The announcement on 19 September follows Times Bookstores’ closure of its final outlet in Holland Road, highlighting the growing challenges faced by brick-and-mortar bookstores in Singapore.

Edmund Wee, publisher at Epigram Books, expressed disappointment, stating: “We tried everything to make this work. Over the past three years, we’ve often asked ourselves, how many people even knew our bookstore existed here, let alone visited?”

Despite efforts to boost traffic, including operating shuttles to increase accessibility, the bookstore struggled to attract visitors consistently.

Epigram Coffee Bookshop, previously located at the Urban Redevelopment Authority Centre on Maxwell Road and later in a pop-up at Beach Road, relocated to SAM in May 2022 in partnership with Balestier Market Collective.

The 20-seater store featured towering shelves showcasing local and Southeast Asian titles, including books from other independent publishers like Ethos Books and Math Paper Press.

However, the location’s industrial setting, which only saw spikes in visitors during major exhibitions like Olafur Eliasson’s, limited consistent footfall.

The closure coincides with the end of Eliasson’s exhibit on 22 September 2024. Although the exhibition provided a temporary boost to the bookshop’s sales, Epigram noted that the increased traffic was short-lived.

Epigram’s future in physical retail remains uncertain. Mr Wee indicated that high rental costs make reopening a physical store unlikely: “Unless rent prices relent, it’s unlikely we’ll move into another space.”

Epigram Books has been a significant presence in Singapore’s independent book scene, promoting local authors and holding literary events.

The bookshop was also a community hub for the literary arts, hosting numerous book launches and events supporting local writers. “These spaces are special to our literary arts community. They’re where book lovers gather, where literary events and book launches happen in support of our writers,” said Mr Wee.

Despite the closure of the SAM store, Epigram will continue to operate its online store. The publisher emphasized the need for continued support from readers: “We’ve come this far with everyone’s support, and we look forward to continued support from our readers as we transition to focus on online sales.”

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