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Friday, November 17, 2006

The GST will in time be raised to 7% as announced by our PM recently in parliament. While many are speculating when this increase will take into effect, many more others are also concerned about the depth of government subsidies and its extent. However, all these questions and worries will be dealt with come February 2007.

In response to this increase in the GST, a pertinent issue of a welfare state was raised in parliament and much heavily debated on. For one, the PAP government is strongly against the idea of establishing a welfare state support system in Singapore for fear of encouraging a parasitic dependency on the government. Yet, it comes across as a paradox that it is also this same government that is continually dishing out heaps of financial support aid to the lower-income groups regardless of the state Singapore's economic situation or adjustments in policy. If one were to scrutinise policy making in Singapore, it is notably evident that in almost every policy that is introduced, our government has always taken a keen emphasis and interest in the lower-income group. If this interest and emphasis is, in their definition, a form of cushioning support rather than that of a sustained support, then perhaps the government could explain why these support aids are never temporal but definitive in nature.

I am against the idea of a welfare state support system primarily because it encourages the wrong attitude of taking ownership of ones own needs. I am also not against the support given by the government to lower-income groups. In fact, I strongly believe that the government should play an even more significant role in helping the lower-income groups. However, my point of contention is the amount of support and idea of such a support. In my opinion, the government should offer credible and adequate financial support aids to these lower-income groups with the objective of helping them move towards a level of self-sufficiency. This progressive approach towards the induction of such financial support schemes will not only squelch the blurred lines of welfare support this government undertakes but more so give these lower-income groups an opportunity to work towards a goal and objective to lead a life that is, in their own opinion, a better one.

The idea of self-sufficiency is very much encouraged in Singapore. Being self-sufficient means that ones needs can be addressed where minimal or if not no form of support should be offered to them. People from the middle-income groups are neither rich nor poor; they are what they describe as a 'sandwiched' income group. The middle-income group is often not at the receiving end of financial support aid simply because they are perceived to be self-sufficient. However, in my own opinion, if this government were to speak of equality of the people then perhaps the government's definition of 'who to help' should be re-considered. As much as the middle-income group and higher-income group will require minimal or if not no form of financial support, yet a showing of such a support by the government would be a clear indication that this government functions to address the immediate needs and the absolute interests of all people of Singapore. It is democracy in its finest, in my opinion.


The GST will be increased very soon. As pragmatic people of Singapore, I would not be surprise if market and consumer spending goes up higher before the 5% makes way for the 7%. Perhaps this is one microscopic form of appreciation of this imminent 7%, while we all sit back and wait till February 2007 to fully appreciate this 7% in a more macroscopic way.


posted at 09:01


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