Singapore’s Success: Who’s Taking who for Granted?

Don’t take achievements for granted

According to the Straits Times news report “Singapore ‘can extend its success by not taking it for granted’: Lim Hng Kiang” – (Feb 2) – “Singapore can remain successful for the next 50 years, but only if it does not take its achievements for granted.

Singapore must live within its means, generate good jobs and build on the strong relationship between the Government, unions and employers”.

$1 trillion in the reserves

With an estimated $1 trillion in the reserves and a Budget cash surplus of $36.1 billion in FY2012 using IMF fiscal reporting guidelines – and from a cashflow perspective not spending a single cent on HDB, CPF and healthcare – “must live within its means” must be the understatement of the century.

Increasing unemployed, under-employed

What has “generate good jobs and build on the strong relationship between the Government, unions and employers” gotten us? Increasing numbers of unemployed, discouraged long-term unemployed, under-employed, voluntarily economically inactive Singaporeans and widespread age  and “foreigners against Singaporeans” discrimination, and real wages that have hardly increased in the last 16 years or so – real university, poly and ITE starting salaries that have hardly increased in the last decade or so.

Childcare fees increased  at double the rate of inflation

Against the pathetic  real wage increases and wages cuts (under-employment and age discrimination) – the relentless rise in the cost of living continues. For example, the median childcare fees has increased by 60 per cent from $530 in 2005 to $850 in 2014, against inflation of only 29 per cent in the same period (“Price of increase in childcare fees slowing”, Straits Times, Feb 3).

150th Press Freedom ranking reporting

Don’t you think that perhaps a more appropriate headline from our 150th Press Freedom ranked media should be “Childcare fees rise more than double the rate of inflation in 9 years”?

So many lower-income

“It’s not very easy to become a high-income country. It’s also not very easy to stay there” – We may be tops in the world for per capita GDP, but about a quarter of our population is in poverty (30 per cent of households spend more than what they earn) and about a quarter of Singaporeans earn less than half the median income.

627,000 “lower-income” residents? 

According to the Yearbook of Manpower Statistics 2014 – there were 627,800 residents earning not more than $1,999 in 2013.

If you deduct the employee’s CPF contribution of up to 20% – the net take-home pay of workers earning not more than $1,999 may be as low as $1,599.

Highest “taxes” in the world?

“Overspending is one way to get into trouble, Mr Lim noted. The Greeks, for instance, “did not collect enough tax, they spent very generously on welfare, and now they have a great difficulty readjusting themselves”.” - If we include CPF which is like an implicit tax, indirect taxes and consumption taxes – we are one of the highest taxed citizens in the world.

Highest reserves in he world

“In contrast, Singapore’s frugal pioneers had built up a sizable nest egg for the nation” – On a per capita basis, we have the highest reserves in the world.

Most profitable national health insurance scheme in the world

“Now, Singapore can afford to invest in more social programmes, such as MediShield Life and the Central Provident Fund scheme.” – Since MediShield is estimated to have more than a billion of accumulated surpluses and the actuarial study on MediShield Life is not made public – will the huge increases in premiums in the future continue to exceed claims every year?

Only national pension scheme in the world that “robs”?

Since CPF is the people’s contributions from their income – the Government does not spend any money on CPF. It has kept an estimated about three per cent of the returns derived from our CPF funds at the expense of Singaporeans, which is unique among all national pension schemes in the world.