Singapore The Welfare State?

As the saying goes, “We spend the early 20 years fighting for an education, the next 20 years being indebted for our housing loans and the next 20 years saving for our retirement”. Will you want your child to suffer the same fate as yours? No wonder our birth rates are declining rapidly, graduates are leaving for a better quality of life and foreign talent is needed to fill this gap.

The current policies should be reviewed to make Singapore a more desirable place for its citizens.

1. Increase CPF interest rates

The government subsidiary, Temasek Holdings is using our national funds for its investment overseas. The source of funds comes mainly from our CPF and taxes. Although Temasek Holdings might double or even triple the investments abroad, the people are not benefiting from this scheme. CPF interest rates should increase along with profits from investments abroad. It is not benefical to the people with only 3% interest rate when inflation is 5% per year. CPF should review its policies to increase their citizens savings for their future.

2. Higher HDB subsidies for Married Couples

“Lets get a HDB flat” Is a typically Singapore marriage proposal when its time for couples to settle down. Although HDB does give a subsidy of up to $40 000 when their combined income is less then $8000 a month, truth is with more women in the workforce, there are more couples earning a combined income of more than $8000. When this policy was implemented, there was a lack of housing. The situation now is relatively different, there is sufficient housing for everyone.

Although a $40 000 housing subsidy might sound attractive, the typical cost of a 3 room HDB flat is at a minimum value of $200 000. A couple still has to fork out approximately $700 per month with interest over the next 20 years of their lives before owning a flat. Not that HDB flats are luxurious or fancy to stay in (more like a pigeon hole), but paying for a flat over 20 years isn’t it abit too much to ask? (although it is a way of life here)

The deterrent that stops couples from getting married is the cost of housing and high standard of living in Singapore. For a start, HDB might want to review their policies to make it easier for couples to own a flat by introducing higher subsidies so they do not have to take a 20 year loan to pay their debts. By introducing a subsidy of $100 000, couples just take a 10 year loan and they will have more finances to support their children. This way, the population is able to naturally replace itself for generations to come.

3. More Welfare For The People

1) Welfare for the Needy
The needs of the needy and poor are being ignored as our economy progresses. A family could only receive a grant of $300 from the town council when the sole breadwinner of the family is unable to work. With the ever increasing cost of living, $300 is barely enough to cover the minimum necessities. A higher grant of $1000 should be given especially for families with more then two children. This is to ensure they are able to pay for their electricity and water bills and buy sufficient food for the family.

2) Unemployment Benefits
In Australia, a person can apply for unemployment benefits of AUD$500 when he is out of job. Economically, it makes sense to the country as it ensures that the economy will not be as affected when there is a sudden recession, people are still able to buy goods and services hence there will be lesser jobs lost. Singapore should look into giving its citizens unemployment benefits as well.

3) Welfare for the Elderly
In Hong Kong, the elderly are eligible for a pension of SG$1000 per month after retirement. In Singapore, the government issues money out of our own CPF savings every month to cover our basic necessities to ensure that we have money every month till the day we die. Sounds quite pathetic doesn’t it?

Filial Piety is very important, even in regards to how the country treats its elderly citizens. More action should be taken into this growing concern of elderly citizens in our country. The implementation of lifts in MRT stations is a radical move, there should be similar steps taken to make this country a livable one for the elderly people.

Disclaimer: These are suggested steps to improve existing policies in Singapore to adjust in accordance to the higher standard of living.