Introduction

Introduction:
Singapore,poverty and content

Singapore is recognized as one of the most economically well-to-do Asian country and may seem to have hardly any of its population below poverty. However, hidden beneath the surface are a minority people in state of poverty. This is more prevalent in the elderly, disabled, single mothers and low incomers but the main contributors to poverty are still the less educated people with low incomes. They eventually become preys to poverty due to strong commitment to meritocracy in education, recent adaptations to the tax structure and government’s manpower policies towards attracting foreign talents as well as the widening income inequality. According to statistics, the proportion of Singapore residents earning less than S$1,000 ($690) a month rose to 18 percent in 2007, from 16 percent in 2002. At the same time, the proportion of those earning S$8,000 and above rose from 4.7 percent to 6 percent in the same period. This implies that Singapore’ economy boom results in the widening of income gap between the rich and poor even if everyone income is raised due to the Singapore Progress Package.

And so, the government felt greatly concern for its people and decided to lay out the different approaches towards poverty reduction.The government came out full force to help the less fortunate and eradicate poverty in the coming years through its various policies and schemes. However, this modest process was disrupted by the recent dire global financial and economical crisis which threatened the vulnerability of poverty even further. This accentuates the need to rethink of poverty reduction approaches that will be sustainable even in this times.

As such, The Singapore Union Party (SUP) seeks to contribute to rethinking of the measures taken to reduce and eradicate poverty. After assessing the progress in poverty reduction via the current policies by identifying the benefits and limitations that led to its inefficiency, we analysed how it will have an impact socially and economically. In addition, we have outlined our approach to tackle this issue so as to wipe out poverty completely. From here, Singapore will be able to maintain its thriving robust economy among its competitors.

Assessing progress in poverty reduction:
definition of poverty & causes of poverty with statistics

The wider definition of poverty adopted by the 1995 Social summit includes deprivation,social exclusion and lack of participation. However, the situation today may be even more deplorable than a money income poverty line would suggest. In Singapore, definition of poverty drawn from the income qualifying criteria in different assistance schemes covers surviving on less than S$10 per person per day.

As mentioned early,people get tangled in the poverty web mostly due to circumstances such as unemployment,low income or have no financial support from their family.Even though there is no officially recognised poverty line, going by the recent number of street people , there are about 170-300 people in Singapore turning the streets to their home yearly. About 50% are old (60 and above years old) and have no family, employment or skills. Others are abandoned by their own families. In addition, the Singapore Department of Statistics has released a figure of about 4 per cent of Singapore’s resident population (or 120,000) living at or close to the poverty line in 1998 (The Straits Times, 31 May 2000). Income distribution as measured by the Gini coefficient was 0.481 in 2000. In the most recent population census (2000a), 12.6 per cent of households (116,300 households) in Singapore earned less than S$1000 a month (average household income was S$4943 per month). The lowest 10% of households excluding those with no income earners had an average monthly income of S$459 in 2000 (average household size was 3.7) (Singapore Census of Population, 2001).
Citation from: http://www.pragueinstitute.org/GUDMag07Vol3Iss1/Yuen.htm

Something indeed had to be done in order to reduce this figures.Thus, being efficient,the government came up with some plans so as to alleviate the issues.

Current Government Policies

Current Government Policies:

The Singapore government implemented many programmes and policy to meets the needs of the needy people in Singapore. The following listed were some policies put in place to help the people in poverty.

1. Housing Policy
govt agency: Housing & Development Board
features:

• strong government support
• provision of financial aid in the form of subsidies and housing loans
• a sound legislative structure
• supportive government policies.

- The Singapore government provided housing of sound construction and good design for the lower income groups at rents which they can afford. This was to maximize the housing options of poor Singapore residents while guarding against exclusion, exploitation, and unsanitary living conditions. This is to ensure that there is a roof rove everyone head.
-Heavily subsidized 1- and 2-room public rental flats under the Public Rental Scheme.
-Allows home ownership even for the poor

2. Public Assistance (PA) & Special Grant (SG)
govt agency:MCYS
features:

• Cash Grants - Monthly cash grants to help with your basic living expenses depending on the household size.
• Medical Assistance - Free treatment at polyclinics and government/ restructured hospitals

• Additional Assistance - PA Households with children may receive additional assistance of up to $150 per child per month.
• Education Assistance - Education assistance for your children to help with school fees.

- The Public Assistance (PA) scheme is a long-term assistance scheme targeted at the most needy in Singapore. If you are not work-capable due to old age, illness or disability, have limited financial means to sustain basic living, and have no or very little family support. The monthly cash Grant given by PA is based on your household size.
- By doing so the government helps the less fortunate with medical aid as medical treatment at polyclinics are free, and education to the children to ensure that their education are not affected by their family backgrounds. The cash grant given also ensures that those who need more help are given more then the rest.
These families (means tested) receive between S$260 per month for a 1-person household and S$825 for households of 4 or more persons under the Public Assistance Scheme administered by the Singapore Ministry of Community Development, Youth and Sports.
Government data showed that last year the bottom 10 percent of the population had a household monthly income of S$1,400 ($1,141) compared with S$23,684 ($19,308) for households in the top 10 percent.

3. Not only are there many government policies, to help the poor, the government also join organizations to help those who are poor. These organisations are under the Voluntary Welfare Organisation (VWO) for example the Adventist Home for the Elders provide supportive care and promote quality life for every elderly staying there, to meet with their emotional, physical needs through loving and professional service. plays an important role in the provisions and delivery of social services in Singapore.

4. Financial Assistance and Bursary Schemes
govt agency:MOE
features:http://www.moe.gov.sg/initiatives/financial-assistance/

The Ministry of Education provides financial assistance to needy Singapore Citizen pupils in Government or Government-Aided Schools. It also provides subsidy for school fees to Singapore Citizen pupils from lower and middle income families in Independent Schools. This only do not apply in Singapore Sports School, NorthLight School, Assumption Pathway School and School Of The Arts as they do not have their own financial assistance schemes.

5. Government subsidies
govt agency: Ministry of Health
features:http://www.moh.gov.sg/mohcorp/hcfinancing.aspx?id=16072

• medisave
• medifund
• ILTC

The government help to manage health care cost in Singapore. Subsidies are given to nursing homes, polyclinics and government hospitals. In hospitals, subsidies are given to the different wards of patients at hospitals.For example, the class C wards receive the most subsidies which is 80%. Medifund was also implemented by the government to help the lower income people who despite Medisave, Medishield and subsidies are unable to afford their healthcare. With the government subsidies, the lower-income people are able to get medical treatment they need at a much lower cost. People of lower income also get the most subsidies compared to the better off citizens.


The government does run a handful of schemes directed at some of the needy, from low-income students to the unassisted elderly. But these benefits are rigorously means-tested and granted only sparingly.

Reasons why poverty still exists after implementation of policies

Reasons why poverty still exists after implementation of policies:

Here are some reasons to why there are people still living in poverty in Singapore, a first-world nation:

1. Meritocracy
Singapore government had been constantly emphasize on meritocracy, wanting to create equal opportunities for all. However, meritocracy is only awarding to deserving Singaporeans or foreigners in some cases. Base on such policy, many children who come from lowly educated families or from poor family backgrounds or even from low standards educations from certain schools, they are mostly unable to fulfil their education needs, needless to say, they will not even be considered to be included under the meritocracy policy. These children are not being exposed to new things like other children, thus they lose out to their fellow friends. They are not given the same opportunity to explore their talents and abilities.

2. Income growth gaps
Many who are facing poverty are mostly Singaporeans who are unskilled or disabled. This is due to the fact that they are having the disadvantages with the backgrounds of their, thus slimming their chances of owning a better or even having a job. While many Singapore who are educated and highly skilled with many policies setting advantages for them, they fatten their chances to earn a job, having a higher income and getting richer and richer. While those who are hiding behind their doors without any jobs, they are suffering from poverty and minimal amount of savings to keep them surviving. As the better educated people are given higher paid jobs they become richer however, the unskilled workers are earning less due to their lack of education. With the richer becoming richer and the poor becoming poorer, the income gap of Singapore is widening.

3. Foreign workers policy
Singapore need foreigners due to the lack of low birth rate. This policy is known as one of Singapore’s manpower policy to help attract more foreign talents and allow more unskilled foreign workers to work in construction and manufacturing plans, leaving lesser and lesser jobs for those who are still struggling at the lower class, owning little skills to allow them find jobs. Many employers would rather employ foreign workers as they do not demand pays that are as high as Singaporeans. These Singaporeans wants to have higher pay as the cost of living in Singapore is rising. However, due to this Singaporeans are unable to find a job. Also foreign talents are competing with locals for a good job, this results in the locals losing jobs to the foreigners. Thus, this increases the poverty in Singapore.

Apart from these three main points, there are still many possible reasons of the poverty rising in Singapore such as the recession, education policies or gambling etc. All this causes share a similar point which clearly draws a line between those who have lowly skilled and those who are talented. This can result more hidden skills and talents buried further under such fast pace society, poverty can just arise from below faster and unconsciously.