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