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SINGAPORE – Even as Singapore struggles with the consequences of Covid-19, the government has managed to increase income and reduce wealth inequality, while ensuring that necessities such as housing and health care remain affordable.
Singapore also continues to be business-friendly and competitive internationally.
These are among the key public service achievements through 2019 in most cases, according to a new report released by the Ministry of Finance (MOF) on Thursday (November 26).
The Singapore Public Sector Performance Review (Spor), a balance of the sector’s work that is presented every two years, summarizes key figures in areas such as the economy and social support.
But unlike previous editions, this year’s review has a special section in recognition of the nationwide effort to combat the coronavirus pandemic. Entitled “Emerging Stronger as One,” it highlights how Singaporeans, businesses and the community have stepped forward to partner with the Government to help those in need.
Here are four key takeaways from the report:
1. Lower income inequality, more job opportunities
For the first time in five years, 2019 shows that Singapore’s Gini coefficient, a measure of income inequality, falls below 0.4.
A Gini coefficient greater than 0.4 usually indicates a large income gap.
After accounting for taxes and transfers, it went from 0.452 in 2018 to 0.398 last year.
Equally positive is the rise in earned income across the board, with those in the bottom 20th percentile rising faster than the median, which is the midpoint of a range.
Another indicator of progress is the increase in the number of employed residents, including women and the elderly, in the last five years.
More than half of them are professionals, managers, executives and technicians (PMET), and the share of PMET among employed residents increased from 54.3 percent in 2015 to 58.3 percent in 2019.
Singaporeans also have more opportunities to acquire new skills.
By the end of last year, 500,000 people and 14,000 companies had benefited from SkillsFuture initiatives.
However, the stork continues to elude more Singaporeans, causing the country’s total resident fertility rate to decline from 1.24 in 2015 to 1.14 last year.
But efforts have been made to encourage families to have children.
For example, the number of preschool places has increased by more than 30% since 2016. They have also become more affordable, with higher subsidies.
2. Competitive economy and labor
Singapore ranked first among the world’s most competitive economies, according to the World Economic Forum in 2019 and the International Institute for Management Development in 2020.
Even amid the pandemic, the Economic Development Board secured $ 13 billion of fixed asset investment commitments in the first four months of 2020. This shows business confidence in Singapore, the report noted.
The growing fintech sector continues to shine in the first half of this year. It attracted equity funding as well as $ 650 million worth of M&A.
Companies in Singapore also prepared for long-term opportunities by venturing into the region, digitizing, and promoting innovation.
For example, direct investment by Singapore-based companies in Southeast Asia increased by 37 percent in the past five years.
More are also going digital: 216,000 businesses have signed up for PayNow Corporate, allowing them to send and receive electronic payments instantly.
Reinforcing Singapore’s competitive advantage is the country’s highly regarded workforce, the only one in Asia to enter a list of the 10 most competitive places for talent in the world.
Workers here, who are continually reminded to rotate and improve their skills, can take advantage of schemes like the Adapt and Grow initiative, which provides career guidance, training, and job placement for those affected by economic restructuring.
3. Business-friendly environment and access to digital services
The World Bank’s Ease of Doing Business Index has consistently ranked Singapore among the top three economies for doing business.
This year, Singapore ranked second and performed well on two other indicators: fourth in the world to start a business and first in the world to enforce contracts.
It only takes a day and a half to start a business in Singapore.
Companies have also been able to innovate through the use of regulatory test environments and with faster approvals from authorities.
One example is the Accelerated Initiative for Artificial Intelligence (AI), which accelerates regulatory approvals for AI-related inventions. Innovators can obtain an AI patent in as little as six months, compared to an average of two to four years.
Last year, 77 percent of businesses were “very or extremely satisfied” with the quality of government electronic services, an increase of 8 percentage points from 2018 and almost a 10 percentage point increase from ago five years.
Singaporeans’ access to digital government services has improved, and the LifeSG app enables them to access more than 40 services.
Enhanced and more secure digital connectivity is underway, including cybersecurity enhancements, 5G testing, and the Networked Commerce Platform, a comprehensive trade and logistics platform.
4. Slowdown in growth and employment due to Covid-19
Despite Singapore’s strong fundamentals, Covid-19 has taken a toll on its economy.
The real GDP growth rate is expected to contract between 6.5 and 6 percent this year.
But pockets of resilience remain, such as biomedical manufacturing, information, communications and the media, the report said.
The labor market continues to face downward pressure, with a resident unemployment rate reaching 4.7 percent in September.
The SGUnited Jobs and Skills Package was introduced this year to expand employment, internship and career training opportunities. More than 117,500 were available in August.
The report noted that in the face of Covid-19 and growing global tensions, it is important for citizens and businesses to come together to co-create future policies.
The head of the civil service, Leo Yip, highlighted the partnership between the government and the people during the pandemic and said:
“Singaporeans’ strong spirit of care and concern for one another stands out… working together has enabled us to serve those in need and overcome this crisis as one.
“(Public service) will continue to partner with Singaporeans to build Singapore’s society and economy for a better future, and to emerge stronger from this crisis.”
The full report can be found on this website.
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