Policies for poverty reduction:
Proposed policies and how it helps in eradication poverty
5-years Poverty lifting campaign
1. Introduce a new public transport assistance scheme.
- As the public transport needs constant maintenance and repair, the public transport prices are slowly increasing. However, the increasing in payments do not increase proportionally with the people’s salary. This new transport assistance only applies to those people with monthly salaries below S$1,500 who has 1 or 2 children and people with monthly salaries below S$1,800 who has 3 children and above. This scheme would be implemented to every member in the family. These people only have to pay half the price of the normal fare, thus lowering their monthly transport expenditure.
2. Lower taxes
- With the cost of living increasing and people’s salary staying the same, the lower income group of people would face financial difficulties. Especially those who are in poverty such as the elderly, who are working very hard just to have three meals. Even so, these people do have to pay the monthly taxes to the government. by reducing their taxes or even 0% taxes, this would help then significantly as they would have more money to spend on other needs. People who are earning less then S$1,500 and supporting one or two children only have to pay 5% of taxes.
3. Subsidising food of the poor and sick for special food products
- Some disabled and sick has to stick to special diets, due to their special medical conditions. However unfortunately, these food products are very expensive and the lower income group may not be able to bear such high cost of the food. The government is currently subsidizing the health treatment that these patients have to undergo but not the expensive food products that these patients have to specially take. By implementing this, the patients would then be able to eat the food that is good for them to remain healthy. If the ratio of the cost of food per month exceeds the 1:5 ratio and the remainder money is below 1,800 for four members of the family, the family can then apply for this subsidy.
4. Doing away with the Central Provident Fund (CPF) minimum sum requirement
- Many of the lower income citizens in Singapore ages 55 to 65 are paying paying 12.5 to 5% of their monthly salary to CPF. However, when they retire, due to the minimum sum requirement to withdraw the amount of money stored in their CPF, they are unable to do so. Without minimum sum requirement, citizens would be able to withdraw any sum of money stored in their CPF. This amount of money would benefit the individuals who are living in poverty and need the money.
5. Self-learning accounts and training leaves
- The top main reasons for many employees who are low-skilled for not turning up skill enhancing trainings are due to lack of time, busy for work or even due to the expenses for such skill upgrading trainings. There is impossible to concentrate on adult full-time education due various employment requirements which restricts many curfews. By providing Self-learning accounts, employees can have more flexible choices for courses curfews, course fees or even transportation. Self-learning account is similar to CPF which by employees will be saving their course fee over a period of time, being self-efficient while allowing self-learning accounts to act as a motivating and life-time education tool for all adults. Not only for those middle-class or better off adults to carry out this scheme, those lowly educated and facing financial difficulties they can also take part in this scheme. Most lowly educated and having financial difficulties employees, they were often unable to overcome their psychological barrier which is losing confidence towards education. Hence, self-learning accounts set aside for situations like this is such that, they will be given a short-term goals while learning with people of the similar standards, through these, they can learn in a conducive and familiar situation while not having financial burden just to upgrade their own skills. Though self-learning accounts, employees can be motivated and be fully equipped with the latest knowledge on their expertise.
- Training leaves provides ample time for employees to concentrate on their skills training, owning exemption from a certain time slot of their work. Such training leaves can only apply to various lowly educated workers who has hardly the time slot due to their job curfews which may vary from daybreak to nighttime. Hence, by applying to only those of almost the similar standards and providing them will further motivation for such trainings, it will enhance their self-morality and confidence, showing better efficiency in their jobs or finding a better job.
6. Despite all the policies implemented, the government can also start a campaign to get the public more aware of the people around them:
1. Get more volunteers to be involved to raise fund for those who are living in poverty
- These volunteers can hold donation drives, the funds raise will go to the less fortunate. This would also creating more awareness among the public to make them understand how are the poor in Singapore coping and how they should help their fellow citizens. This would also encourage everyone to contribute actively back to the economy and remember to give back to society such as those who are hiding in poverty.
2. Creating more jobs for unskilled Singaporeans instead of unskilled foreigners
- By providing more job opportunities for the unskilled Singaporeans, they would be able to provide for themselves. By working, they are also contributing back to the country. When more people are able to get jobs, they would not have to rely on the financial assistance given but also based on their own hard work.
3. Having courses for those who are unskilled and lowly education
- Allow more Singaporeans to show their hidden talents
- Have more affordable and educational courses which Singaporeans can take to constantly improve themselves and their skills. When they have more skills, finding a job would be much simpler, they would also be able to support themselves. Thus, this would help to reduce poverty in Singapore.
4. Having talks with those who are in need
- Have the people who are living in poverty to come out and stop hiding, try to understand their problems, provide with finance management if they need.Let them know what is the campaign really is for and not to let them only rely on such public support, instead putting their own best and improving themselves. With the support from public and the government, they would be able help themselves, find a job if possible, thus this would reduce poverty in Singapore.
7. Earned Income Tax Credit
- The government could reinstate progressive tax structure by trying out policy like Earned Income Tax Credit (EITF).This policy has been implemented in USA and so far, the results are quite successful.
- This policy simple works by providing a subsidy for low-income working families based on the number of children in the family. The credit increases at each earning and reaches it maximum. It stays flat before reaching a phase-out range, where the credit falls with each additional dollar of income until it disappears entirely.
Proposed policies and how it helps in eradication poverty
5-years Poverty lifting campaign
1. Introduce a new public transport assistance scheme.
- As the public transport needs constant maintenance and repair, the public transport prices are slowly increasing. However, the increasing in payments do not increase proportionally with the people’s salary. This new transport assistance only applies to those people with monthly salaries below S$1,500 who has 1 or 2 children and people with monthly salaries below S$1,800 who has 3 children and above. This scheme would be implemented to every member in the family. These people only have to pay half the price of the normal fare, thus lowering their monthly transport expenditure.
2. Lower taxes
- With the cost of living increasing and people’s salary staying the same, the lower income group of people would face financial difficulties. Especially those who are in poverty such as the elderly, who are working very hard just to have three meals. Even so, these people do have to pay the monthly taxes to the government. by reducing their taxes or even 0% taxes, this would help then significantly as they would have more money to spend on other needs. People who are earning less then S$1,500 and supporting one or two children only have to pay 5% of taxes.
3. Subsidising food of the poor and sick for special food products
- Some disabled and sick has to stick to special diets, due to their special medical conditions. However unfortunately, these food products are very expensive and the lower income group may not be able to bear such high cost of the food. The government is currently subsidizing the health treatment that these patients have to undergo but not the expensive food products that these patients have to specially take. By implementing this, the patients would then be able to eat the food that is good for them to remain healthy. If the ratio of the cost of food per month exceeds the 1:5 ratio and the remainder money is below 1,800 for four members of the family, the family can then apply for this subsidy.
4. Doing away with the Central Provident Fund (CPF) minimum sum requirement
- Many of the lower income citizens in Singapore ages 55 to 65 are paying paying 12.5 to 5% of their monthly salary to CPF. However, when they retire, due to the minimum sum requirement to withdraw the amount of money stored in their CPF, they are unable to do so. Without minimum sum requirement, citizens would be able to withdraw any sum of money stored in their CPF. This amount of money would benefit the individuals who are living in poverty and need the money.
5. Self-learning accounts and training leaves
- The top main reasons for many employees who are low-skilled for not turning up skill enhancing trainings are due to lack of time, busy for work or even due to the expenses for such skill upgrading trainings. There is impossible to concentrate on adult full-time education due various employment requirements which restricts many curfews. By providing Self-learning accounts, employees can have more flexible choices for courses curfews, course fees or even transportation. Self-learning account is similar to CPF which by employees will be saving their course fee over a period of time, being self-efficient while allowing self-learning accounts to act as a motivating and life-time education tool for all adults. Not only for those middle-class or better off adults to carry out this scheme, those lowly educated and facing financial difficulties they can also take part in this scheme. Most lowly educated and having financial difficulties employees, they were often unable to overcome their psychological barrier which is losing confidence towards education. Hence, self-learning accounts set aside for situations like this is such that, they will be given a short-term goals while learning with people of the similar standards, through these, they can learn in a conducive and familiar situation while not having financial burden just to upgrade their own skills. Though self-learning accounts, employees can be motivated and be fully equipped with the latest knowledge on their expertise.
- Training leaves provides ample time for employees to concentrate on their skills training, owning exemption from a certain time slot of their work. Such training leaves can only apply to various lowly educated workers who has hardly the time slot due to their job curfews which may vary from daybreak to nighttime. Hence, by applying to only those of almost the similar standards and providing them will further motivation for such trainings, it will enhance their self-morality and confidence, showing better efficiency in their jobs or finding a better job.
6. Despite all the policies implemented, the government can also start a campaign to get the public more aware of the people around them:
1. Get more volunteers to be involved to raise fund for those who are living in poverty
- These volunteers can hold donation drives, the funds raise will go to the less fortunate. This would also creating more awareness among the public to make them understand how are the poor in Singapore coping and how they should help their fellow citizens. This would also encourage everyone to contribute actively back to the economy and remember to give back to society such as those who are hiding in poverty.
2. Creating more jobs for unskilled Singaporeans instead of unskilled foreigners
- By providing more job opportunities for the unskilled Singaporeans, they would be able to provide for themselves. By working, they are also contributing back to the country. When more people are able to get jobs, they would not have to rely on the financial assistance given but also based on their own hard work.
3. Having courses for those who are unskilled and lowly education
- Allow more Singaporeans to show their hidden talents
- Have more affordable and educational courses which Singaporeans can take to constantly improve themselves and their skills. When they have more skills, finding a job would be much simpler, they would also be able to support themselves. Thus, this would help to reduce poverty in Singapore.
4. Having talks with those who are in need
- Have the people who are living in poverty to come out and stop hiding, try to understand their problems, provide with finance management if they need.Let them know what is the campaign really is for and not to let them only rely on such public support, instead putting their own best and improving themselves. With the support from public and the government, they would be able help themselves, find a job if possible, thus this would reduce poverty in Singapore.
7. Earned Income Tax Credit
- The government could reinstate progressive tax structure by trying out policy like Earned Income Tax Credit (EITF).This policy has been implemented in USA and so far, the results are quite successful.
- This policy simple works by providing a subsidy for low-income working families based on the number of children in the family. The credit increases at each earning and reaches it maximum. It stays flat before reaching a phase-out range, where the credit falls with each additional dollar of income until it disappears entirely.
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