[News] Singapore's economic boom widens income gap

[bigsale]

Despite sporting a first-world GDP per capita of $29,000 -- second only to Japan in Asia -- Singapore has an income inequality profile more in line with third-world countries.

SINGAPORE, Nov 9 (Reuters) - Carol John, 27, doesn't own a bed. Every night she sleeps on thin mattresses which she shares with her three young children. Outside her one-room flat, a smell of sewage lingers in the common corridor.

Just a few kilometres away, on Singapore's Sentosa island, Madhupati Singhania relaxes on his $435,000 yacht berthed at the city-state's swanky One 15 Marina Club.

Income inequality is nothing new in free-market Singapore, but two years of blistering economic growth and a government policy of attracting wealthy expatriates have created a new class of super-rich, while a string of price increases for everything from bread to bus fares have made life harder for the poor.

"I can't save anything, it's so difficult for me," John told Reuters. John, who is unemployed, relies on her husband's S$600 (US$420) monthly salary and a S$100 government handout.

"We don't benefit at all from the economy. As far as I know, my husband's pay hasn't gone up," she said.

Singapore's economy is firing on all cylinders, with a booming construction sector, record tourist arrivals and a fast-growing financial sector all contributing to a gross domestic product set to grow nearly 8 percent in 2007.

But the rising tide is not lifting every boat.

The proportion of Singapore residents earning less than S$1,000 ($690) a month rose to 18 percent last year, from 16 percent in 2002, central bank data released late last month show.

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.

"When a country becomes richer, you tend to see a widening of income inequality. Over the last few years it has been worse," said econometrics professor Anthony Tay at SMU university.

Despite sporting a first-world GDP per capita of $29,000 -- second only to Japan in Asia -- Singapore has an income inequality profile more in line with third-world countries.

Singapore's Gini coefficient, a measure of income inequality, has worsened from 42.5 in 1998 to 47.2 in 2006, and is now in league with the Philippines (46.1) and Guatemala (48.3), and worse than China (44.7), data from Singapore's Household Survey and the World Bank show.

Other wealthy Asian nations such as Japan, Korea and Taiwan have more European-style Ginis of 24.9, 31.6 and 32.6.

FAST CARS, BIG BOATS

CIMB-GK Research economist Song Seng Wun believes that growth itself partly explains the widening income gap.

"In an environment where growth is huge, there are lots of opportunities for risk takers, and inevitably, you will get this widening (of the income gap)," he said, adding that those in stable jobs will also benefit, but to a lesser extent.
Opportunity is what attracted Singhania to Singapore. He intends to buy a new 47-foot yacht for $1.3 million.

"You've got everything you want in Singapore. You want to buy a fast car, you want to buy a big boat, you want to buy an aeroplane, whatever you need, you can get in this country."

Singhania, who runs a business consultancy firm, was originally from Mumbai but decided to move to Singapore and become a Singapore citizen, citing its first-world comforts.

The Asian Development Bank blames the widening income gap in Singapore and many other Asia countries partly on globalisation, which it said favours the well-educated, and recommended policies to create more equal opportunities and wealth.

Singapore's government has made the reduction of the income gap a priority, but argues welfare should not be a crutch, and rules out unemployment benefits or a minimum wage.

While the ruling People's Action Party is in no danger of losing its stranglehold on parliament, the growing income disparity has hurt its credibility.

"There is definitely envy, but this is not enough for civil disturbance," said sociologist Ho Kong Chong at NUS university.

"These emotions of despair and desperation are missing in Singapore because of the government's housing policy and transfer payments," Ho said.
Singapore's extensive housing programme provides owner-financed flats in government-built blocks and the state also provides modest income supplements to those in low-income jobs, although there are no unemployment benefits.

Carol John, who left school when she was 15, does not know much about support schemes. "In the years to come, I'll just leave it in God's hands, whatever he gives me, I'll take it." ($1=1.448 Singapore Dollar), ($1=.6894 Euro) (Editing by Geert De Clercq and Jacqueline Wong)

Source: http://www.guardian.co.uk/feedarticle?id=7063347

[kyouta]

the sad truth ...

[dillion]

one can expect more MRT delays.

[concept|infinit]

The government really has to do something about the widening income gap or we'd become like the US on this.

One good thing I like about Singapore is that I feel people here aren't as class conscious. If you're poor here you won't get discriminated against on the streets

[Karihoka]

not being mean or anything
but dont u think all of it comes down mainly to education?
she left school at 15
most rich ppl finish highschool and stuff...
just my thought
dont flame me T_T

[Kube]

The way I see it, the widening economic gap is inevitable. It's just human nature and natural selection. Those who are smarter and are risk takers reap the benefits, and consequently, their children reap the benefits.

If you're poor and want to get rich... lots of hard work is the way brother. Yes, you must suffer more than the richer folk, but there is simply no other way... no government or charitable organisation will simply give you a better life.

[vermin]

Nothing wrong with a widening income gap, it only means that the rich are getting richer, lower income got into middle income, middle income got into high income, and not necessarily poor getting poorer. The majority of Singaporeans' lives have improved along the years instead of getting worse. You just need to work hard, educate/train yourself more, be positive, and you will live a better life.

[kiddocoo]

The government really has to do something about the widening income gap or we'd become like the US on this.

One good thing I like about Singapore is that I feel people here aren't as class conscious. If you're poor here you won't get discriminated against on the streets

Sooner or later the discrimination will come. Its just a matter of time.

[weib]

because most of the people are overseas lol..
what you get now is poorer people and FT.

[Philip]

If you're poor and want to get rich... lots of hard work is the way brother. Yes, you must suffer more than the richer folk, but there is simply no other way... no government or charitable organisation will simply give you a better life.

Just one question, dude. Are you a working adult living in Singapore?

Don't you know the employers here are very paper oriented? If you do not have good qualifications, many will simply shunt you for FTs? That said, even if you have a general degree, it's not a guarantee for an iron rice bowl with the "cheaper" Indian and Chinese imports (no offence here).

Start your own business perhaps? Think again. Unless you have substantial savings or support from a well-to-do family, chances are, you will be just those one in a million trying to strike it big in a fiercely competitive free economy market. Lastly, forget those overnight millionaire stories on States Times or MediaCop TV. Strictly for show only.

Phil

[Philip]

You just need to work hard, educate/train yourself more, be positive, and you will live a better life.

We got an old school mentality here. Good luck to you. No amount of loyalty and diligence is going to secure you a job. Now it's all about EQ and what not nonsense. I tasted it first hand before I bill out from the I.T industry.

Phil

[Paul_Yeo]

We got an old school mentality here. Good luck to you. No amount of loyalty and diligence is going to secure you a job. Now it's all about EQ and what not nonsense. I tasted it first hand before I bill out from the I.T industry.

Phil

So what can we Singaporeans do now?

[Philip]

So what can we Singaporeans do now?

Work smart. Now toking power is more important than just slogging long hours. Best to avoid industries saturated with FT such as I.T, too.

Phil

[SpeedingBullet]

Just one question, dude. Are you a working adult living in Singapore?

Don't you know the employers here are very paper oriented? If you do not have good qualifications, many will simply shunt you for FTs? That said, even if you have a general degree, it's not a guarantee for an iron rice bowl with the "cheaper" Indian and Chinese imports (no offence here).

Start your own business perhaps? Think again. Unless you have substantial savings or support from a well-to-do family, chances are, you will be just those one in a million trying to strike it big in a fiercely competitive free economy market. Lastly, forget those overnight millionaire stories on States Times or MediaCop TV. Strictly for show only.

Phil

Damn, the sad reality.

[Xavior]

not being mean or anything
but dont u think all of it comes down mainly to education?
she left school at 15
most rich ppl finish highschool and stuff...
just my thought
dont flame me T_T

_|_
rich people can afford better education.
poor ones are struggling to have education.

Nothing wrong with a widening income gap, it only means that the rich are getting richer, lower income got into middle income, middle income got into high income, and not necessarily poor getting poorer. The majority of Singaporeans' lives have improved along the years instead of getting worse. You just need to work hard, educate/train yourself more, be positive, and you will live a better life.

The articale is saying. rich get richer. poor get poorer.
I wonder how you read the article.

[d23]

Tired of having every negative news report about our country's problems blamed on the PAP. I'm sure our ruling party is omnipotent and have no flaws whatsoever since they can do well on every front. I'm sure they'll give us all $10,000 progress packages next year (yes all 4.68 million of us!).

[Karihoka]

_|_
rich people can afford better education.
poor ones are struggling to have education.


ok i ask u 1 thing... is public schools that expensive to go to? answer that question. i come from an international school so i can say my family's quite well off... but i studied in a public school before... and it doesnt come up to much money does it? you dont even need to go to uni to get a great job... poly's are good enough what... yet to say JC's

[Karihoka]

and its not like there's anything the government can do anyway... tell me what can the government do? tax the rich give it to the poor? you dont get anything if you dont work hard... what else can i say?

[Philip]

ok i ask u 1 thing... is public schools that expensive to go to? answer that question. i come from an international school so i can say my family's quite well off... but i studied in a public school before... and it doesnt come up to much money does it? you dont even need to go to uni to get a great job... poly's are good enough what... yet to say JC's

Allow me to answer your question since I studied "public" schools all the way to polytechnic and private university.

The school fee is indeed very affordable. HOWEVER, we have at least 40 students per teacher in a class. Style of learning is pretty straight forward, too. You are required to memorized your textbooks and work on ten-year series for exams. Simply put, it is like a mass production factory that churns out standard goods with very little emphasis in quality.

In addition, anyone planning to work in an organization will have to look further than poly education for better career prospect. I had a colleague in my ex company who was "stuck" in a senior position for years just because she got a poly cert, while everyone else including junior staff were promoted to middle management positions.

Phil

[Xavior]

Karihoka: _|_

Have you ever seen kids working their a$$ off and does not have time to study?
It just shows how ignorant you are.

[Karihoka]

thats their own problem... oh well... no time management its their own fault lah.
yes yes affordable... so why leave school at 15? answer that... coz of time management issues? geez!

[Karihoka]

and its not like there's anything the government can do anyway... tell me what can the government do? tax the rich give it to the poor? you dont get anything if you dont work hard... what else can i say?


u havent said anything abt this... why? coz there's nothing they can do about it. with the large inflow of expats, more and more better educated ppl are taking the jobs available in singapore. so you're saying all this is the government's fault for taking in so many expats?

hiah... so fun to argue this kind of things =D

[yihfeng]

thats their own problem... oh well... no time management its their own fault lah.
yes yes affordable... so why leave school at 15? answer that... coz of time management issues? geez!
Maybe you should show some more understanding for those less fortunate then you? Working and studying is by no means easy. My dad came from an extremely poor family. Everyday after school he helps out at my grandparents farm, digging, watering, feeding chickens, pigs etc. I'll bet a spoilt kid like you will die if you did that for even one month, not to mention since you are 5...

Yes, the Singapore government should give out more welfare. They can afford to, and those less fortunate should be helped -- but not by too much. The last thing Singapore need is a bunch of lazy bastards living off welfare. Those in genuine need for help should be helped. Those who aren't, shouldn't.

Overall, education is still relatively accessable in Singapore, so there's very little excuse. But more welfare help will wipe out that very little excuse :)

[yihfeng]

u havent said anything abt this... why? coz there's nothing they can do about it. with the large inflow of expats, more and more better educated ppl are taking the jobs available in singapore. so you're saying all this is the government's fault for taking in so many expats?

hiah... so fun to argue this kind of things =D
Yes, you tax the rich and give it to the poor. That's how the taxation system work. There are people in need of genuine help, single parents, parents who aren't very educated. Just because you are borned into a poor family shouldn't mean that you are disadvantaged. Just because you were borned into a well off family doesn't mean that you should be stucked up like this :sarcastic

[Xils]

Tired of having every negative news report about our country's problems blamed on the PAP. I'm sure our ruling party is omnipotent and have no flaws whatsoever since they can do well on every front. I'm sure they'll give us all $10,000 progress packages next year (yes all 4.68 million of us!).

:hat1:

[Xavior]

Karihoka: you are seriously a fucked up spoilt brat.

[XiaoDongDong]

aiyo... just see the minister pay u know how big is the income gap alrdy....

[yihfeng]

Karihoka: you are seriously a fucked up spoilt brat.
Can't agree more. Betcha you haven't gotten your first pay yet...

[XiaoDongDong]

Karihoka: you are seriously a fucked up spoilt brat.

agree... u r one kind who have not been poor before and now still sucking milk out of your mom with no worries...

[spinnaker80]

The government really has to do something about the widening income gap or we'd become like the US on this.

One good thing I like about Singapore is that I feel people here aren't as class conscious. If you're poor here you won't get discriminated against on the streets

That is because those who are rich, aren't on the streets.

[Xils]

Allow me to answer your question since I studied "public" schools all the way to polytechnic and private university.

The school fee is indeed very affordable. HOWEVER, we have at least 40 students per teacher in a class. Style of learning is pretty straight forward, too. You are required to memorized your textbooks and work on ten-year series for exams. Simply put, it is like a mass production factory that churns out standard goods with very little emphasis in quality.

In addition, anyone planning to work in an organization will have to look further than poly education for better career prospect. I had a colleague in my ex company who was "stuck" in a senior position for years just because she got a poly cert, while everyone else including junior staff were promoted to middle management positions.

Phil

hmm so much for building an education hub yeah? there will always be things to say about anything...the important point is everyone (or almost everyone) went through the same education system...if everyone turned out differently and with varied fortunes in life, it clearly shows that there are many other factors involved. the same 40 students class can produce students with multiple As and distinctions and those who flunked the same subjects.

your emphasis on having a cert is pretty old school too :hat1: i have seen many blame their inability to climb the corporate ladder on their lack of paper certs...you should mix around more with the upper mgmt to learn that is just an excuse. in general, there are a lot more factors involved...education being just ONE of the factors and NOT the dominant one...:hat1:

its one thing to show compassion but another to allow us to be misled by emotions and be blinded to the actual factors which will help solve the issues.

[Xils]

Maybe you should show some more understanding for those less fortunate then you? Working and studying is by no means easy. My dad came from an extremely poor family. Everyday after school he helps out at my grandparents farm, digging, watering, feeding chickens, pigs etc. I'll bet a spoilt kid like you will die if you did that for even one month, not to mention since you are 5...

Yes, the Singapore government should give out more welfare. They can afford to, and those less fortunate should be helped -- but not by too much. The last thing Singapore need is a bunch of lazy bastards living off welfare. Those in genuine need for help should be helped. Those who aren't, shouldn't.

Overall, education is still relatively accessable in Singapore, so there's very little excuse. But more welfare help will wipe out that very little excuse :)

sometimes, that kind of life experiences will actually help people like your dad to work harder and appreciate the finer points in life rather than take things for granted - kinda make him a stronger and better person.

some of the measures available out there does seem like welfare already, albeit not a full blown system like in some western countries. the govt should definitely help those in dire needs of a proper job to get one. as for financial management and living within their means, one has to take sole responsibility for that.

[Philip]

hmm so much for building an education hub yeah? there will always be things to say about anything...the important point is everyone (or almost everyone) went through the same education system...if everyone turned out differently and with varied fortunes in life, it clearly shows that there are many other factors involved. the same 40 students class can produce students with multiple As and distinctions and those who flunked the same subjects.

your emphasis on having a cert is pretty old school too :hat1: i have seen many blame their inability to climb the corporate ladder on their lack of paper certs...you should mix around more with the upper mgmt to learn that is just an excuse. in general, there are a lot more factors involved...education being just ONE of the factors and NOT the dominant one...:hat1:

its one thing to show compassion but another to allow us to be misled by emotions and be blinded to the actual factors which will help solve the issues.

Remember I qualified it by mentioning you will need more than a poly cert if you are planning to work for others? I do agree that there are people who excel from the rigid education system but if you were ever exposed to the overseas equivalent, perhaps you would understand what I mean. Down here is just pure theories and memorizing. This may explain why Singaporean does not generally think out of the box. For those straight As study, I would believe they are born gifted or brought up in special circumstances.

Make no mistake; my original intention is to highlight the paper-oriented nature of companies here in Singapore compared to countries like States. It's an open entry but as to whether a person can excel is another issue altogether. Like you mentioned, there are a lot more factors to consider but without a proper cert, you would not even stand a chance or a shot at these potential jobs.

Phil

[Karihoka]

Well you seem to like the "Tax rich, Give Poor" method... well here's what i see at the moment in Australia.

At Australia this is what's actually happening. The tax here is crazily high for people who earn a certain amount each year. The more you earn, the more you get taxed (in terms of %). ok... if you're saying this will help clear the gap, why do i still see TONS of people begging and stuff here? on TV shows in aussie sometime they see tons of people living in poverty even though its such a rich country. you cannot just say that taxing rich people will get this fixed. think about it.

right now your answers are just the "jealous" coz people are rich. no i'm not rich. yes i've lived in a farm to help take care of animals, plant vegetables, and stuff (i dont want to go there) it may not be in poverty, but life out there is hard... i'm not even from singapore... i'm not even from WEST malaysia, but from the humble sarawak, where people seem to think we live on trees. i've lived this b4, you think i dont know?

so yes, tax isnt going to fix this problem
and yes, i'm pampered and spoilt, got a problem? =)

[jujubeans]

boom my a33 men.

[projectile]

The whole world should fall into socialism again...

I love to see those elites suffer...

[Xils]

Remember I qualified it by mentioning you will need more than a poly cert if you are planning to work for others? I do agree that there are people who excel from the rigid education system but if you were ever exposed to the overseas equivalent, perhaps you would understand what I mean. Down here is just pure theories and memorizing. This may explain why Singaporean does not generally think of the box. For those straight As study, I would believe they are born gifted or brought up in special circumstances.

Make no mistake; my original intention is to highlight the paper-oriented nature of companies here in Singapore compared to countries like States. It's an open entry but as to whether a person can excel is another issue altogether. Like you mentioned, there are a lot more factors to consider but without a proper cert, you would not even stand a chance or a shot at these potential jobs.

Phil


i agree with your points...guess its just hard to summarise one's thoughts with just a few sentences especially for such multi faceted issues. i think there are pro and cons to our education system. being rigid when we are younger is better in my opinion because the rich folks can easily work out for their kids the correct path, subjects to pursue etc. the less well off like myself will not have the slightest inkling of what to study etc. even going from sec sch to jc was a big jump for lazy or ignorant folks like me who find the lecture/tutorial system a major change and a very daunting experience :hat1: maybe this is one of those cases where one size doesnt fit all.

to be fair, even in the USA etc, you probably still need certain paper qualifications for certain jobs, just that maybe they are more subtle about how they put it across. eg. over there, they could tell the applicant how good they are and its just unfortunate the other applicant is more experienced etc. whereas over here, they could be more forthright and tell you the other chap has a degree and you don't :hat1: i have seen some companies hire poly grads instead of degree holders as engineers because they feel the former would be less demanding and more loyal and stay longer. often, the hiring process depends very much on the hiring manager and he/she may have their own biasness.

[yihfeng]

Well you seem to like the "Tax rich, Give Poor" method... well here's what i see at the moment in Australia. At Australia this is what's actually happening. The tax here is crazily high for people who earn a certain amount each year. The more you earn, the more you get taxed (in terms of %).
Yes, in Australia, welfare is being handed out too freely and the people demand the Government to provide for every tiny thing. That's why John Howard is trying to change Australia from a Welfare state to a more work-hard-and-you-get-rich state. That's a good thing. But of course the people want to easy way out, and hence Kevin Rudd's support.

But in Singapore, it is leaning way too much to the work-hard-and-you-get-rich state, which means some people genuinely in need of help is missing out. Whats more, the Singapore government can afford to give out more, and the rich of Singapore (for eg. ministers) can easily be taxed at 30% and still live a comfortable life.

It is all about getting a balance and neither Aust nor Sg is very well balanced IMO. Besides, the tax rate of Aust is coming down, no matter who wins the election, so...

ok... if you're saying this will help clear the gap, why do i still see TONS of people begging and stuff here? on TV shows in aussie sometime they see tons of people living in poverty even though its such a rich country. you cannot just say that taxing rich people will get this fixed. think about it.
I never said taxing rich people == fixing problems did I? The whole issue is larger than just tax and all will be solved. Its just like I can point to thousands of people who study very hard yet do not get good grades. Is that an argument not to study hard?

The Australian culture is different from Singaproe and I don't think they can be compared exactly. For eg. in Australia, the poor get highlighted alot more. Every policy made there's a discussion on how it'll impact the low income folks. They come from a different culture, different history, different society etc etc. All of which you conviniently ignored...

right now your answers are just the "jealous" coz people are rich.
Quote whoever who was jealous that you were rich? In fact, I am very happy knowing that I am at least twice as understanding as you are...

no i'm not rich. yes i've lived in a farm to help take care of animals, plant vegetables, and stuff (i dont want to go there) it may not be in poverty, but life out there is hard... i'm not even from singapore... i'm not even from WEST malaysia, but from the humble sarawak, where people seem to think we live on trees. i've lived this b4, you think i dont know?
So did you work and study at the same time? Work as in real work? Every waking momment of yours that you aren't studying is spent at the farm?

And yes, I have half a brain and I know sarawak isn't a kampung. We don't care where you are from. And saying you are private schooled and you've lived a hard live before?