Workfare to be fixed part of social safety net

Dec 4, 2006 Workfare to be fixed part of social safety net Help scheme for low-income will be reviewed, adjusted but here to stay: PM By Li Xueying THE Workfare bonus for low-income workers will become a permanent feature of Singapore's social safety net, starting with a three-year run. It will be reviewed and adjusted after that, but the scheme is here to stay, Prime Minister Lee Hsien Loong said yesterday. 'Workfare is going to be the fourth pillar of our social safety net,' he said, pledging a significant commitment to extend permanent help for the low-income group. It will join the Central Provident Fund, the 3Ms of healthcare (Medicare, MediShield and Medifund), and the home ownership scheme, in undergirding the web of aid programmes here. 'So it's a critical part of our system, and it will ensure that we will systematically support and protect low-income Singaporeans,' said PM Lee at a People's Action Party event. Party cadres hailed it as a fundamental shift in government thinking, one that acknowledges that there will be those who need continuing help even as the economy as a whole does well. PM Lee, secretary-general of the ruling PAP, was speaking to 1,000 cadres at the 29th Ordinary Party Conference which elected the party's central executive committee. In his speech, delivered in Malay, Mandarin and English, he also touched on external relations and the PAP's values. The Workfare announcement comes a month after PM Lee's pledge at the opening of Parliament, to 'tilt the balance' of help towards lower-income Singaporeans affected by globalisation. 'It's a big move,' he said yesterday. 'We thought about it for a long time...but we've decided it's the right thing to do.' He defined Workfare thus: 'For every dollar you earn through your own efforts the Government will give you something to match.' Part of it will be in cash but most of it will be ploughed into the CPF, for housing, health care and retirement. It would be for three years initially as the Government still needed to figure out the best way to do it, he said. Second Finance Minister Tharman Shanmugaratnam will give the details in the Budget on Feb 15. This year's Workfare Bonus was a one-off measure that some 330,000 low-wage, older workers received. The payout came to $150 million. Workfare is a major reason, said PM Lee, for the impending hike in the goods and services tax (GST) from 5 to 7 per cent. It would have been much easier for the Government to 'keep things as they are, no GST increase, everybody will be happy'. But this was neither a responsible nor honest approach, he said. 'Better be upfront with Singaporeans, speak long-term, move now, prepare for the future and put in place a system, build up our resources, our ammunition so that when something unexpected happens, we will be able to respond quickly.' The GST hike will add $1.5 billion to Singapore's coffers annually, said PM Lee, who is also Finance Minister. He listed certain demands on the money - paying for Workfare, an ageing population that would also mean an increase in spending on health care and infrastructure, and investing in the future, from education to transport. But some of the extra revenue should also be saved for 'unknown unknowns', he added. 'You may have Sars, you may have some other crisis. Better keep some of our powder dry.' He acknowledged that the hike was unpopular, but said he was convinced it was the right thing to do, in order to help the low-income. 'We have to take the tough decisions,' he said. At the same time, an offset package is being put together to cushion the impact. There will be something for the middle-income group and the elderly, he promised. But ultimately, more will be for the low-income, whose wages will not rise as fast. Speaking in Mandarin, PM Lee said the poor will receive 'far more' than what they pay in higher prices. He also addressed the question posed by some on why basic items could not be exempted from the GST hike. Better-off families spend more than the poor and old, he said, and hence such a move will benefit the better-off more. Summing up, PM Lee said he was 'confident that our policies will bear fruit'. 'It will take some years but we are heading in the right direction and this will strengthen our position. By the next election in 2011, the PAP will be ready to present its report card to Singaporeans. 'Then judge us on our performance: whether the economy has grown, whether people have better jobs, better lives, whether we live in a harmonious society.' xueying@sph.com.sg

Party activists hold key to 'swing' voters

Dec 4, 2006 Party activists hold key to 'swing' voters MINISTER of State for Education Lui Tuck Yew was elected barely seven months ago, but is already thinking about the next election. Speaking to more than 1,000 party cadres, he said one challenge before the PAP is to win over 'swing' voters ahead of the next general election. 'We must work to consolidate the backing of the PAP's core supporters and win over the 'swing' voters to our side,' Rear-Admiral (NS) Lui said. 'We can be sure the opposition is trying to do the same as they put together better qualified and more credible candidates.' Analysts say the PAP's base of core supporters has traditionally ranged from 40 per cent of all voters in an opposition ward, to 60 per cent in a PAP ward. Swing voters are those who may be swayed by a range of factors, unlike loyal supporters of either PAP or the opposition. What strategy did the MP for Tanjong Pagar GRC put forward to win these voters? The former navy chief proposed preparing party activists to play a greater role in future elections as more wards are likely to be contested. These activists are integral to the party, he said, paying tribute to those in his branch by declaring 'I am nothing without them'. 'Headquarters will find fewer uncontested candidates and their supporters to run the HQ, to man the operations room, to craft messages for the fliers and to organise rallies. We will have to rely on specialist teams of activists to take on these and other functions. We need to start to identify these people, train them early and test them out.' RADM Lui recognised the desire of party activists, especially those younger, to have a greater say in policies as 'healthy and constructive'. Where he felt they were needed most, however, was in being informed to explain policies on the ground - and even in cyberspace. He said they should help put information out there to win people over, and could even supply their views 'to moderate the vitriol and balance the skewed comments' on the Internet.

Guard against politics of envy: MP

Dec 4, 2006 Guard against politics of envy: MP By Zakir Hussain BISHAN-Toa Payoh GRC MP Josephine Teo is troubled by what she sees as a growing trend here: the labelling of certain Singaporeans as part of an elite. The elite include two groups: the rich and Singaporeans who have won government scholarships and work as policymakers in the civil service. But what she finds disturbing is the way the elite are portrayed. They are depicted as people who do not understand the problems of ordinary folk, and are only keen to advance their own interests. Totally ignored is the fact that they may have come from humble backgrounds or worked hard to get where they are. Such portrayals are 'highly divisive', Mrs Teo told PAP cadres yesterday. They foster the wrong perception 'that a certain class of citizens are more valued than others', she said, adding: 'This is clearly untrue, or we would not take pains to build an inclusive society.' She saw this labelling as one expression of what she termed the 'politics of envy' - in which those who fare better or are seen to get more from the Government become objects of envy. The PAP, she stressed, had to guard against this politics of envy, as it threatened social cohesion. It could manifest itself in other ways, she said, such as neighbours feeling left out because they had to pay for lift upgrading, unlike those who had lifts serving their floors. Such envy could also be felt when people compare the level of state spending on items like health care here with that in other countries, and conclude that the Government is not doing enough to help needy Singaporeans. Comparisons like these could be used to get support to lobby the Government to do what is popular, but not necessarily in Singapore's long-term best interests, she said. The challenge, therefore, is for the party to reach out to all groups and assure them the PAP will do its best for them. Otherwise, there will be dissatisfaction with the party, she said. The party has also strengthened the social safety net, and must work to improve social mobility for the poor, she added. Its activists must keep their ears close to the ground, help people understand the decisions behind unpopular policies and continue being 'a party that takes action' by helping residents. Marine Parade GRC MP Fatimah Lateef also told cadres that compassion and empathy are two key words that will help the party weather challenges. She said: 'For us to be good cadres, we must have a genuine concern for the people. But for us to be great, we must all inculcate that deep sense of empathy.'

Fresh approach crucial to avoid class barriers as the country enters a new phase

Dec 4, 2006 Meritocracy, Singapore style Fresh approach crucial to avoid class barriers as the country enters a new phase By Lynn Lee THE need for Singapore to avoid class barriers between the haves and have-nots, which typically emerge when societies mature, was stressed by Prime Minister Lee Hsien Loong. Playing a key role in this effort is one of the PAP's core ideals: meritocracy. But it has to be pursued with a fresh approach as Singapore enters a new phase, said Mr Lee. What is crucial now is to ensure that every talented Singaporean, no matter how poor, is able to move up through many avenues. But how far each goes depends on his ability and drive. So, 'we're talking about equal opportunities, not equal outcomes,' he said, when he identified the four ideals that will continue to guide the PAP in its efforts to take Singapore forward. The others are racial and religious harmony, enterprise and inclusiveness. He laid out these all-important signposts yesterday when he mapped out the party's role in a changing world to about 1,000 PAP cadres at a conference. Mr Lee, who is its secretary-general, noted that Singapore was at a turning point, with globalisation requiring its people to adapt continually to changes. But the years of pursuing meritocracy have seen many people from poor backgrounds move up. Their children have done well too, said the Prime Minister. With time, it will be harder to find the same numbers of children from humble backgrounds moving up, he added. So, 'it makes it all the more important that we must... keep the avenues open and give a child from a poor family every opportunity to get a good education.' For this reason, there are 'first-class' schools in all neighbourhoods, each with its special strengths and spirit. Also, the needy can get financial help to send their children to kindergarten, he said. But these opportunities will not promise that everyone ends at the same finish line. So, he warned, 'we must not end up selfish'. Urging the successful to give those behind a helping hand, he reminded them that the system and many 'helping hands', many of which may have gone unnoticed, helped them succeed. 'Don't trample on others to get to the top because if you do that, you will fail,' he said. Meritocracy is also key in maintaining racial and religious harmony here. Singapore would be torn apart if, for instance, either the majority or the minority is favoured over the other, he said. Issues of race and religion are sensitive as well in South-east Asia, where terrorism is a real threat. This threat makes racial harmony even more important because in the event of a terror attack, ties among the races will come under strain. To keep the economy humming, the PAP has had to focus on enterprise. In other words, get people to work for themselves. In doing so, Mr Lee wants Singaporeans to stop expecting the Government to make things happen all the time. 'If you see something not right, put it right. You see something you want to do, do it. Move. And if you succeed, good for you.' The last ideal, inclusiveness, centres on helping everyone feel they are moving forward together, and benefiting from Singapore's success. The PAP is a party which represents the whole of society, stressed Mr Lee. It was a voice for all races, religions and classes, including the size-able middle class who are the 'centreground' for Singapore politics, he said. 'And we want to bring everyone together to achieve the best for Singapore, because I think that's the way we can do well for ourselves,' he said. lynnlee@sph.com.sg

Workfare to be a permanent feature of Singapore's social safety net: PM Lee

Majulah PAP!

Workfare encourages Singaporeans to take up jobs whenever they can and be productive. The government has rightfully taken the stand that those who try to help themselves should be helped the most. This is a reasonable viewpoint and prevents us from sliding down the slippery slope of welfarism in which unproductive and lazy members of society simply leech off those who are hardworking and seek to depend on their own effort for a living.

Just ask yourself: would you rather that the taxes you pay and schemes for the needy be given to those who are sincere in standing on their own two feet, or to any Tom Dick or Harry who only has the intelligence to fill out an application form correctly? Look at the situation in European countries like Sweden or Denmark, and you will have no problems agreeing with me.

Minimum Wage does not protect employees from abuse as there will always be ways to get around it. It will, as I have explained in another thread, make Singapore less competitive and cause the poor to suffer even more in the long run. It is far better to have workfare, which is a system of rewarding the productive and hardworking.

Workfare to be a permanent feature of Singapore's social safety net: PM Lee
By Farah Abdul Rahim, Channel NewsAsia | Posted: 03 December 2006 1741 hrs

SINGAPORE: Workfare will be a permanent feature of Singapore's social safety net in the future, says Prime Minister Lee Hsien Loong.

He said this will tilt the balance in favour of low-income Singaporeans.

Singapore has recently been dealing with an increasing income gap and how to level up those who cannot cope with globalisation.

The three-year Workfare scheme, which will be announced on Budget Day in February, will be reviewed before it continues beyond the initial three years.

Continuation of the Workfare Bonus aims to encourage the lower income worker to stay employed.

For every dollar earned, there will be a matching reward from the government part cash and the rest in the CPF account.

Mr Lee said Workfare will be the fourth pillar of Singapore's social safety net, besides the existing three pillars of the Central Provident Fund, the 3M of MediSave, MediFund and MediShield, as well as housing.

This will help to ensure there are more systematic support and protection for low-income Singaporeans.

Workfare is one major reason why the Government decided to increase the Goods and Services Tax (or GST), as it will bring in some S$1.5 billion more in revenue annually.

"It's easier not to increase GST and keep things as they are. It may be ok for now, but Singapore will be in serious trouble after 5 years or so. So I thought it's better to be upfront with Singaporeans, think long-term now to prepare for the future, put in place a system and build ammunition so that when something unexpected happens, we can respond quickly," the Prime Minister said.

Besides paying for Workfare, the revenue raised from the GST hike will also go to higher healthcare spending, preparing Singapore for an ageing population and investing in the future, such as in education and housing.

But Mr Lee assured that help will be at hand for those who cannot cope with the increase.

"We'll have a comprehensive off-set package more than adequate to care for Singaporeans and help them adjust. It'll be weighted towards the lower end. Some of the middle-income and sandwiched classes are (only) confident government will care for low-income so they complain and ask for help. So don't worry, we have not forgotten you. As for older Singaporeans, we will continue to help especially those who are less well off."

Mr Lee also explained that the decision to raise the GST may be unpopular, but it is the right thing to do.

"In government, we have to bite the bullet even if it's not a popular decision. It's a tough business. We have to take tough decisions and ask if we're doing the right thing for all and if it's the right thing, we go ahead and do it. At the same time, we have to explain to all and help them accept it.

"I am confident the policy will bear fruit and this will strengthen our position and be ready with our report card for the next GE. And then people can judge us based on our results and whether people have better lives then. We are upfront and give the bitter medicine first; worry first and enjoy later."

Mr Lee was speaking to some 1000 members at the People's Action Party Conference. - CNA/so