Discussion On Whether Singaporeans Can Come Together As ‘One’ Despite Differences

Singapore is a multi-ethnic and a multi-cultural country, despite being inhabited by different races and religion, Singaporean are still a cohesive entity. However, recent research has shown that over the last decade, social stratification has been an ongoing issue in Singapore. With the ever growing economy, the income gap between the skilled and the unskilled continues to widen. Globalization provided business opportunities for skilled individuals to profit from their career and enjoy their dividend as compared to those who were semi/unskilled. This essay will shed light on both for and against the effectiveness of current measures to reduce income inequality.

Firstly, education plays an important role towards the success of an individual and their personal growth. Conversely, a research has shown that lower income families tend not to prioritize early education due to the overwhelming of other issues on hand. Hence, an initiative by the government “KidSTART” focused to provide biological and physical support for these children, with the help of professionals collaborating with the parents. Simultaneously, the expansion of education provided by the government for every child, regardless of their income background, to receive similar educational kick-start. In order to make education affordable, the government has set up several monetary assistance schemes. For instance, heavily subsidized schools fees and meaningful bursaries, aims to support individuals from the lower income families, enabling them to study without any financial concern. As such, education aids to bridge the gap between the higher and lower income families.

Secondly, Shanmugaratnam (2015) introduced the investment of human capital through “SkillFuture”. This scheme provides Singaporeans from different walks of life with opportunities to advance and reach their fullest potential. To illustrate, a low income individual who does not have the privilege to be skilled previously due to various circumstances, may find openings to grow from this scheme. Therefore, with the relevant skills attained, individuals may find themselves learning, earning, and working alongside with those from the middle to higher income group; thus contributing to the economy and at the same time closing the income inequality gap. Higher income groups has the tendency to invest in private insurance plans for better coverage and pay out when illness strikes during their old age.

On the contrary, the lower income groups depend greatly on the affordable healthcare schemes established by the government. However, despite the effectiveness of it, Medishield Life posted an issue towards the lower income aged amongst us. These elders are not receiving a stable monthly income, and yet annual deductions and co-payment are required in order for them to utilize their Medishield Life. A significant number of aged experience more than one chronic diseases, and the increase in healthcare cost has led to an increase in the annual top. In addition, studies has shown that in other economy rich countries, high income groups are paying more in terms of income in taxes when compared to Singaporeans.

A consumption tax – Goods and Service Tax (GST) should be redistributed and paid accordingly based on the amount an individual earns; thus decreasing the burden lower income groups. Even though the government has introduction GST vouchers in 2012 to help to lower income families, it does minimal to assist the issues they are facing. Workfare Income Supplement scheme implemented by the government to increase the minimum salary for several lowly waged jobs. However, with the ever-growing economy and the increasing price for basic necessities, the government needs to device new ways to ensure that the minimum salary are not left stagnant or forgotten. An example could be a mandatory biannually increment of salary. If the salary of the low income group remain unchanged over a long time, while the inflation rate of commodities is in a rising trend with the increment of highly paid individuals frequently revised, the income inequality gap will widen exponentially.

Education system is another area whereby improvements can still be made. Individuals who excel in schools are placed in elite classes, while those who did not perform as well are placed in a separate class. Elite students may come from wealthy background where they are sent to multiply enrichment programs by their parents. Normalizing the differences and mixing these different individuals into a class not only enable them to help one another academically, it also paves way for inclusive social interaction as they graduate from school.

In conclusion, bridging income inequality gap in Singapore requires both the government and Singaporeans to work hand in hand. The government may strive to provide as much schemes or initiative to extend its help to its citizen, but the decision also lies in whether Singaporeans are willing to change their mindset and embrace other options in order to complement the government's effort.

11 February 2020
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