[ad_1]
SINGAPORE: Singapore’s social safety nets must adapt to “major changes” in the economy and labor market to keep inequality under control, Deputy Prime Minister Heng Swee Keat said in Parliament on Monday (Aug 31).
With economic changes accelerating and job interruptions due to the adoption of increasingly common technology, he noted that Singapore will have to adopt “an integrated view” of its economic and social policies.
READ: Government will weave economic and social policies more closely for the post-COVID-19 world: Heng Swee Keat
Having a job remains the best form of well-being for Singaporeans, he told the House, adding that the Government will continue to invest in its people and match them with new opportunities.
“In this way we will keep social mobility alive,” he said in a speech delivered during the debate on the president’s speech.
“At the same time, with major changes in the economy and the labor market, we will have to adapt our social safety nets and keep inequality under control.”
He added: “More workers will go through difficult times and we must allow them to adapt and recover through this crisis and beyond.”
This includes adjusting support for the self-employed as more Singaporeans participate in the “concert economy”, either part-time or full-time. More must also be done to lift lower-wage workers and allow older workers to continue working if they wish, he said.
THE GOVERNMENT KEEP AN OPEN MIND
Heng, who is also Minister of Finance and Coordinating Minister of Economic Policies, said that various ideas have been put forward to adapt the country’s social safety net, such as minimum wage, universal basic income and unemployment insurance.
“The Government will keep an open mind to all these ideas. But we must also recognize that there are no magic bullets, ”he said, noting that each of these ideas has its merits and unwanted effects.
“We have to consider tradeoffs and be clear about what works for our context and our time.”
READ: Singapore will drive sustainable growth and further strengthen social safety nets: President Halimah
For example, demands on Singapore’s social safety nets are increasing at a time when its income base is growing more slowly and amid stronger competition for tax revenue between countries, he said.
Therefore, I must warn against seeking what may seem like ‘free solutions’; somehow someone else will have to pay for these schemes. There are tradeoffs, ”Heng explained.
“If we want more social spending, taxes will have to go up. Or it will mean spending more at the expense of future generations, as many countries have done by increasing debt. “
Social safety nets must also be strengthened in a way that “reinforces, and does not undermine, a person’s efforts,” he added.
Heng said that a social safety net “cannot become a set of shackles” to hold down those who started out with less or “create dependency.”
ADAPTING THE ECONOMY
In his speech, Heng also outlined various ways to strengthen Singapore’s economy.
One of those strategies, he said, is to find new ways to “be a vital node, with rich and deep interconnections with the rest of the world.”
Heng said the size of Singapore and the lack of a national interior means there is no buffer against external shocks. Therefore, the country must forge new connections, such as digital economy deals, and deepen its ties with Asian markets to harness the potential of the region, he said.
Singapore also has to “remain open to investment and talent from around the world,” Heng said.
READ: Job competition from job pass holders could become ‘divisive issue’, will be addressed, says President Halimah
He acknowledged the anxiety among Singaporeans about their livelihoods in an economic recession, adding that the government’s “economic strategies should serve the interests of Singaporeans.”
“The foreign investment we attract should create meaningful jobs for our people and strengthen our corporate ecosystem. Singaporeans should be given fair consideration in the workplace, “he added.
Heng cited the latest adjustments to qualifying wages for foreigners in Employment Passes and S Passes as an example of how the government has modified foreign labor policies “to ensure that the interests of Singaporeans are respected.”
But he warned against Singapore turning inward.
“We cannot close ourselves off from the world or make foreigners unwelcome in our society.”
READ: Singapore seeks ‘quality rather than quantity’: Chan Chun Sing on changes to overseas work pass policy
Heng also spoke about how Singapore can take “an even more integrated and coordinated approach to economic transformation” building on its existing tripartite partnership to include more stakeholders such as education and research institutions, as well as community groups.
The country will also have to redouble its efforts to develop people to their full potential, promoting lifelong learning and exploring other new possibilities.
More work will also need to be done to find new bright spots amid the economic turmoil.
He referred to the Emerging Stronger Taskforce, which was created four months ago for this purpose and has made “good progress.”
Since then, the task force has commissioned seven industry-led coalitions, dubbed Alliances for Action, and is exploring ideas in areas such as environmental sustainability, smart commerce, digitization of the supply chain, and the use of robotics. .
“These can create new growth markets for our companies and good jobs for Singaporeans,” he said.
In a speech that also touched on how Singapore should stick together amid these challenges, Heng said the country will need to adapt while remaining true to its values.
“Change will leave us behind if we stand still. That we must adapt is a fact,” he told the House.
“What will define this term of office is how we will adapt, that will build a better life for our people. Even as we keep pace with change, we must remain true to the values that have allowed us to progress all these years.”
CHECK THIS: Our comprehensive coverage of the coronavirus outbreak and its developments
Download our app or subscribe to our Telegram channel for the latest updates on the coronavirus outbreak: https://cna.asia/telegram
