Thursday, May 02, 2013

Info-graphics : Income Inequality in Singapore....

I haven't been writing for a while. I think it is the big overhang from the White Paper that incensed Singaporeans and intensified political discussion at all levels of our society. Singaporeans today are much more aware of the challenges in our society than any other point in the last few decades. While the govt tries to fix the problems we have with housing and transport, the real hard problem that our society face is that of inequality. The PAP seem to avoid all the hard decisions on taxes, minimum wage and healthcare - preferring to keep the status quo...but the middle ground is very much eroded.

The problem of severe inequality makes solutions for all other problems harder. Inequality in itself creates an unlevel playing field for Singaporeans and when a large segment find it so hard to overcome their  disadvantages they will stop supporting the system...no matter how good your transport system is or what you try to do in public housing.

We have never seen the kind of extremes we see in the wealth distribution today. It is the highest in the developed world (we sometimes share this dubious honour with the United States). A dominant govt like that PAP cannot say it is not due to its policies ....it is clearly an outcome of its policies. Policies that amplify inequalities by continuous pursuit of pro-business policies almost to the point of neglecting the plight of the working class. The PAP now alters its policies to limit foreign labor growth and increase the ratio of Singaporeans in the workplace. But this is a shift from an extreme position and there is only so much it can do because businesses have grown dependent on imported labor. Telling Singaporeans they are "doing something" is not going to satisfy the ordinary working citizen that is fast losing his patience because he senses the PAP govt is unable to make fundamental changes...and perhaps it can't because it has painted itself in the corner by going down the same path for far too long.

Watch the Malaysian election closely because it is going to tell us something. Politicians such as Najib knew he had to make changes when the citizens voted in large numbers for the opposition. He did go ahead to make numerous changes like eliminating the ISA, implementing minimum wages, providing free healthcare for the elderly and he did run the economy relatively well - decent growth and low unemployment. But what he couldn't do was to get rid of cronyism and corruption which Malaysians today simply cannot accept. It remains to be seen if he has done enough but my sources tell me they are heading towards further losses.

Leaders sometimes know that they need to change after they overcome their own denial but underestimate the rate and magnitude of change. I think leaders in Singapore have underestimated the effects of income inequality. From their Ivory Tower they can philosophized and think that people should just accept the extreme inequality as a consequence of their "meritocratic system". This is a mistake. It is an easy mistake to make when you experience the favorable outcomes of the system as an elite showered with opportunities and high wages - you justify your own success as the result of meritocracy and by that token see the failure of others as the result of their lack of ability and effort. But they forget that meritocracy does not exist in isolation - the inequality is amplified by policy choices of our leaders and not just dependent the talents and effort of individuals. Our relatively extreme inequality is simply the result of extreme policies adopted by the PAP govt....and the PAP govt has made no fundamental changes to move from its extreme.      

70 comments:

Anonymous said...

welcome back ! have been waiting for your article.
thanks for this article !

Anonymous said...

Dear Mr Tan,

do Singaporeans stand a chance of seeing and listening to You at HLP Speaker Corner?
Many must have wished for such an occassion.

Anonymous said...

You are right. PAP should be voted out long ago.

Anonymous said...

We need a change before we could get better.....and result of Malaysia election will impact on Singapore.

Anonymous said...

Yes, welcome back!

Missed your perspective very much and thanks for reiterating inequalities. They are indeed stuck in denial and fail to see the problem

Anonymous said...

Good you are back. Healthy and witty as ever.

Anonymous said...

welcome back, life is incomplete without reading insightful stuff from you Lucky.

Anonymous said...

Very good analysis. You have put the things in right perspective.

Anonymous said...

I believe Najib will still win on 5 May.

Because the parties in the opposition coalition Pakatan Rakyat are not really that compatible except on the surface.

So Malaysians are worried if Pakatan come to power it will be worse than Barisan Nasional led by Najib.

Similarly in Singapore, PAP will still win in 2016 because 60% think best alternative WP is still not ready to be government. And even their leader Low Thia Khiang also honestly admitted WP are not ready. Which is true, just by observing them and the other oppositions.


'

Anonymous said...

Pinky Loong will still apologise for his party in 2016 shed a tear or two.

eastgwm said...

dear lucky tan, great to have you back. everyone needs a break/holiday now and then. but again, like someone else wrote, life is just not the same without your writings .... thank you

Anonymous said...

It was not very nice for L Tan to keep his followers in suspense.
Especially when Feedmetothefish gone home suddenly.

Chong Han said...
This comment has been removed by the author.
Chong Han said...

Welcome back Lucky.

Always good to hear a calming voice of reason.

Anonymous said...

write whatever, say whatever ...

cUm 2015/2016 general election, miw will still win ..

- gerrymandering will intensify

- reinforcing the kiasu, kiasi mentality of the 60% ( fear of changes )

- twitching the existing election process???

- "carrot" will be offered again, but the sticks will be applied within three months ... damn!!! but it really effective in getting the votes

- crocodiles tears will flow again, guaranteed to work wonder

- declaration that daft singaporean are the "masters of the country .. we are your servants" will be highlighted in the msm

- more PR and marketing techniques ... hopefully PERSONAL funds are used

- introduction of rules and regulations to "enhance the quality and reliability of social medias"

pappy sure win ....

Anonymous said...

Wicked people more than good people? But who is good enough? None?

So Lucky said...

Hi Lucky,

Glad that you are OK. But is it so difficult for you to drop a word or two, to keep your readers from being anxious for so long?

Anonymous said...


What can we do to make sure after GE 2016, PAP is a minority in Parliament?
Maybe, we need the combined strength of NSP and WP to form a single party?

Anonymous said...

Thanks Lucky.

Finally see a new post!

Keep them coming please, as I always enjoy your insights.

gm . 绿效精神 said...

Good that you are back again after some break. With the further limit on foreign labor growth (no minimum wage yet), employers should now see that they had taken advantage/ abused the system for too long by just enriching their own kind.

For employers that are way above high profit, workers need to be rewarded with at least half-to-one month bonus. For workers that are way below market rate, employers need to give a minimum 5% salary increase to at least offset inflation cost.

Anonymous said...

Dear lucky good to read yr post again! Missed them! Hope u had a good break!

Anonymous said...

Good to have you back.
The current sorry state of our country is because G policies favour those people who have money. Landlords are making more money that the average hardworking citizens. When such things happen, more and more people will just go buy a property and collect rent rather than do an honest day's work.

We need to change this mindset or in the longer term, Singapore will be doomed.

Anonymous said...

Welcome back, Lucky!

I thought those dogs have tracked you down and invited you for a super long tea session under the I Say Act.

Have a great weekend!

Anonymous said...

Change can only come from the people and not from PAP. I eagerly awaits GE2016, and I hope my sacred vote will change this govt.

I am also watching Malaysia election very closely because how voters vote in Malaysia will be quite symbolic to how Singaporeans should vote in GE2016. In fact, BN has did much better than PAP and if BN can longer sustain its power, PAP should jolly well vanish from Singaoreans' sight.

Singaporeans should also look up to Malaysian voters that fear of toppling their corrupted govt is no longer an option.

The said...

/// Leaders sometimes know that they need to change after they overcome their own denial but underestimate the rate and magnitude of change. ///

Exactly. As was the case of high ministerial pay. After years of denial, they knew they had to do something, and yet the outcome was token cuts.

This high ministerial pay is going to be the albatross on their neck until they do drastic cuts to bring it down to decent levels. The high pay is the six degrees of separation for whatever unhappiness that the hoi polloi has.

Lye Khuen Way said...

You are back writing in itself is Good News !
Excellent post.
You are unfortunately spot-on about the ruling party inability to change because they keep justifying the income in-equality.

My personal take is the wrong Public Housing policy quite many years ago where they justify the Land Cost, as if they are building private condo etc.

Anonymous said...

NTUC is THE PROBLEM.

The G used tripartism to screw the workers. When FTs were flooding the workplace, NUTC did not know or if it did, it did nothing to stop it. Its chief seems only to bother with his feel rich monthly perusal of his CPF statement, basking in his multimillion dignity bestowed with taxpayers' money. Other than that, he does not have a portfolio.

Anonymous said...

The G used tripartism to screw the workers.
Anon 3/5/13 14:38

But then why the workers don't screw back?

And there should be many more workers than bosses and elites what. So therefore workers are also majority of voters what.

But how come PAP can still get majority votes?



Anonymous said...

But then why the workers don't screw back?
Anon 3/5/13 14:55

Because if they screw back, it will make things worse for them.

So it is a choice of the lesser of 2 evil.

To get out of the evils, the worker must be smart so as to become the boss or the elite. Then only can make lots of money.

If not smart, they will remain screwed. That's life in Singapore and also elsewhere.

Anonymous said...

Singaporang din know sinkies like to screw themselves meh?
How did the NTUC got so many members?Supports from the workers lah.

Anonymous said...

Lucky Tan,

Good to have you back.

Anonymous said...

Talking about Ntuc, You think mr miyaki has been arm twisted? There seems to be a contradiction to his two posts on the subject of labor union

Anonymous said...

Glad that you are back.

Hope that people will get wiser from your writing and stop voting for dominating ruling party that twisted facts and presented half truths. I still feel many singaporeans especially those doing well are deeply brainwashed by pap.

Anonymous said...

The only way for them to hear you is when they have to hear you.

Right now, they would rather that you hear them.

Anonymous said...

great to see you back!

Anonymous said...

Meritocracy is a myth in Singapore to justify their policies that sided with the rich. Think about how Ah Long and Ho Jinx get their jobs and there is no merit but only crony.

Anonymous said...

Nice to know u r alive.....tot something happened to u. Miss yr writing

Anonymous said...

Sunday I'm flying to KL for a few hours just to vote vote against BN and turn around back to SG. I will be spending about $300-400 for this trip.

One of my friends, is currently on a 7-9 hours drive up north to his home town, and will turn around on Sunday after he votes for DAP.

There are thousands of us out to, as we like to say, "kasi dia mati. ini kali la!!!"

Sinkies in the other hand has got no balls nor the commitment. They only know how to kpkb while monitoring the COV of their HDB flat. Well, at least that's the impression they give me.

PAP will rule another 50 years.

Anonymous said...

Please don't come out into the open. Truth and logic are still valid under a pseudonym.

Michelle said...

Hi,

I agree with you that inequality is a major issue in Singapore. And I just wanted to share with you a research article that draws a link between meritocracy and the status quo.

Ledgerwood, A., Mandisodza, A., Jost, J.T., & Pohl, M. (2011). Working for the system: Motivated defense of meritocratic beliefs. Social Cognition, 29, 322-340.

Unfortunately there is no direct link to this article but I'll be more than happy to email the pdf version to you if you're interested!

Anonymous said...

If we had meritocracy in Singapore, we wouldn't be having so many members of the Lee, Kwa and Ho family serving at the very top echelons of our civil service and stat boards.

Meritocracy my @$$

Anonymous said...

You know why people power don't work?

Because you got smelly feet

think-free-and-fair said...

Hi Lucky,

Glad to see you are back. You are one of the most insightful socio-political bloggers in Singapore, if not the most. For a time, I thought you were critically sick or the authorities have issued some scary warning to you. Great to know the truth is none of them.

Anonymous said...

“Nowadays, anyone who wishes to combat lies and ignorance and to write the truth must overcome at least five difficulties. He must have the courage to write the truth when truth is everywhere opposed; the keenness to recognize it, although it is everywhere concealed; the skill to manipulate it as a weapon; the judgment to select those in whose hands it will be effective; and the running to spread the truth among such persons.”
― Bertolt Brecht, Galileo


http://forums.hardwarezone.com.sg/63889470-post1155.html
www.hardwarezone.com.sg - View Single Post - [EXCLUSIVE] SCDF ...

http://www.guardian.co.uk/commentisfree/2013/jan/14/neoliberal-theory-economic-failure


(comment)

jonniestewpot

15 January 2013 9:31am
37

@NegativeStateRelief -

I see your Sweden and raise you Singapore.
You shouldn't have done that.
(See here.)
http://www.bbc.co.uk/news/world-asia-16920951

Note how Singapore (a country much more unequal than the UK and USA)
(All of it hidden.)
http://paynpay.blogspot.sg/2011/04/hdb-homelessness-is-not-housing-issue.html

But this is the whole sentence:
Note how Singapore (a country much more unequal than the UK and USA) is a far more prosperous place to live in than Sweden.

Your argument is confused combining wealth with equality and calling it prosperity. Singapore doesn't use any of the measurements to define poverty the way OECD countries do.

As you can see the homeless in Singapore are criminalised and sent to prison.
(See here.)
http://singaporemind.blogspot.co.uk/2010/04/homeless-in-singapore.html


Just take a look at this page you can keep Singapore and all of its hidden misery. I'll take Sweden any day.


---------------------------
(next comment)
http://johnharding.com/2010/01/18/singapore-%E2%80%93-hotbed-of-terrorists-arms-traffickers-and-drug-lords/
http://sgforums.com/forums/10/topics/364260


Rozina

16 January 2013 10:16pm
0

@Andrew Wood - " ... Also, Singapore's success mainly came from being open to international trade."

Singapore is also open to arms trafficking since the 1980s at least when it helped funnel armaments from Swedish companies like Bofors to India, Iran and Iraq.
A nice little earner there! end.

eremarf said...

Lucky, you are missed - glad to see you writing again!

Re anonymous' comment: "The current sorry state of our country is because G policies favour those people who have money. Landlords are making more money that the average hardworking citizens. When such things happen, more and more people will just go buy a property and collect rent rather than do an honest day's work."

You mean capital is allocated to secure rentier rights, rather than to more productive uses, e.g. buying machines, technology, improving work processes, funding research and innovation, etc?

Capitalists are not all rentiers - but the highest returns on capital in today's world are seeking rents. The returns per dollar on seeking rent (especially in the speculative short term) is better than the returns per dollar on investing in real productive economic activity. Naturally, capital gets allocated to seeking rent!

This is partly the case because governments have become more amenable and pliable to big money's interests. Because money is power, and concentrated wealth is concentrated power - and clearly undemocratic!

Another problem is that as people get poorer, as the middle class disappears, there is just less consumption - which maybe isn't a bad thing in itself, given climate change and all that - but it does mean that the economy (especially the real, non-rent, non-speculative bits) will begin to contract as people consume less.

And as the economy contracts - well, everyone loses, but for some, losing just means having less wealth, while for others losing can mean bleak lives, shattered futures, and even be matters of life and death.

At the end of the day - our society still lacks the political will to care for people, for human beings. We still worship money, make money the raison d'etre of our existence. There are questions of economic efficiency, and questions of ethics and philosophy. We're tunnel visioning on the one, and missing out on the other.

@Michelle - thanks for reference to the paper - but the elites of the world have never acknowledged good science, while mis-using "bad" science, c.f. using Reinhart and Rogoff to support austerity in Europe and US. Same thing is happening in Singapore as well - academic evidence and justification for public policy are post-hoc, cherry-picked affairs. Just ask Donald Low.

Anonymous said...

"At the end of the day - our society still lacks the political will to care for people, for human beings."
eremarf 4/5/13 10:28

But then why 60% people, or human beings or Sinkies rather, has the political will to vote PAP every election?

Eyes Wide Open said...

Malaysia call to its citizens to 'ga-ga" change government. Singaporeans should get ready for this, especially with the spurious case after the review is done on AIMgate. The team was led by none other than ex-ISD director Benny Lim who led the Operation Spectrum in the old days. You would be really daft if you can trust 10% of the findings.

http://www.youtube.com/watch?v=jIOf821K-ac

eremarf said...

@Anonymous 4/5/13 10:48

"But then why 60% people, or human beings or Sinkies rather, has the political will to vote PAP every election?"

Well, this is such a big question! My take (broadly) is:

1. People are not informed about citizenship, society, politics - people do not know of or believe there are good alternatives to a PAP-dominated Singapore. They do not understand well what effects policies have on them.

2. Maybe some people in Singapore don't have a strong sense of local community. In short, people are selfish, have small social circles, and cannot imagine the community cooperating and helping each other. There is lack of trust and solidarity across and between Singaporeans.

3.Partly all of the above can be ascribed to Singapore's political climate and history (endless number of things here - climate of fear, gerrymandering, control of press, ISA, compliant judiciary used for political purposes, politicisation of everything from grassroots to town councils i.e. municipal management, communal-based policies heightening race-consciousness, etc ad infinitum et nauseum) - people won't have what wasn't built, or was crushed. What doesn't get nurtured, will not flourish.

Democracy isn't maintenance-free. There is a cost to democracy. If people don't want to put in time to be informed, to take precious time off to do politics (by joining political parties, joining non-party-political grassroots, joining civil society, NGOs, by talking to their MPs), then democracy will be fragile if it even exists. But it is worthwhile isn't it? Democracy costs, but the benefits far outweigh the costs.

Anonymous said...

Demons-crazy good for driving swines off the cliff. Other than that, you still end up crazy.

Anonymous said...

Even if PAP is very bad which Lucky Tan and other bloggers have described,

even if it is true,

and even if best alternative WP and other opposition not ready to be government,

then by right PAP should lose its deposit in a by election what?

But PAP could still get 43% votes!!!!

Which means 43% will vote PAP no matter what, election or by election or whatever.

So in GE 2016 PAP will for sure get at least 43% votes.

And PAP just need only 17% of those suffering Sinkies who are scared they accidentally vote PAP out of power and things will be even worse because WP not ready,

so there you are, PAP will win 43+17=60% again in 2016.

If it happened in 2011, it will happen again in 2016 if Low Thia Khiang is still leader of WP because WP will still not be ready to be government.


Anonymous said...

2011 not ready.

2013 also not ready.

Then 2016 can be ready?

What do you think?

Anonymous said...

It is true under PAP, there are many Sinkies who suffer due to income inequality and money no enough.

But are they the majority of voters?

And even if they are, there will always be some who will still vote PAP. Why like that, only God knows.

So maybe in a way, God help PAP to win.

Clear eyed said...

Dear Lucky, great that you are writing again! Your posts are always educational and a pleasure to read as they are lucid, logical and informed by compassion.

Anonymous said...

L Tan will be able to attract at least 7000 participants at speaker corner.

Agree ?

Anonymous said...

The politicians may not be the creme de-la creme they claim themselves to be, but if one assumes they are open-minded and truly "pragmatic", it is unlikely they do not recognize the serious consequences or economic drag of inequality. Rather , it is far easier to believe that the personal advantages of being a crony and preserving the current unequal system are driving them to adopt a political ideology based on the Thatcherite system of "no welfare, destroy labour" or Reagan-style of "pro-business, starve the government". If I were already drawing a million dollars based on nothing more than my A level results and 2 interviews for a government scholarship (even though there were at least 1000 others every year with equal or better A level results than I), I would willingly subscribe to a political ideology backed by enough voodoo economics theory that would preserve my cushy job. Why should I undo all the policies of people before me, which made me become part of the elite? Why should I accept pay-cuts and allow the poorest 10$=% to have free medical or lower housing? Easier to find an economic justification that preaches "free market is the panacea for all" right? Status quo would be just fine. That is why the problem is far more insidious than Malaysia's of ridding corruption - because every father mother's son in government and public service are coming together to defend the status quo, its not one or a small group of cronies, its at least 2 generations of PAP and civil servants all defending the status quo. Its a system-wide problem. That is why you have incompetence at so many areas like housing health transport immigration, AIM, Brompton, SCDF, CNB, CPIB, RC commitee members, bankers, etc etc.

Anonymous said...

4/5/13 16:49

Precisely, thats why you need a sacrifice. Where is your sacrifice?

Anonymous said...

"I think leaders in Singapore have underestimated the effects of income inequality."
Lucky Tan

Do you underestimate leaders in Singapore?

Believe it or not, I think they are smarter than you think.

If not, how could they have got at least 60% to vote for them every election, despite the effects of income inequality?

Manda_la said...

Ready or not we will be voting oppositions in to replace the PAPigs because we simply have enough of those porkers to last us a lifetime. NO MORE!

Low Thia Kiang, there's no need to be keh kee where politics is concerned. Even if you and your party are not ready, so what? The pigs were not ready in 1959 with their rag-tag team of barbers and ji-chiong-fan women and an occasional unemployed lawyer. But they went in nonetheless and learned along the way and came out smelling roses, at least for a time.

So don't worry too much about the nuts and bolts of government. When you are given the chance in 2016, do not hesitate. Charge right in, we Singaporeans are behind you all the way. There will be the inevitable mistakes and goofs, but which brand new government does not experience all those things? Even the 50plus year old PAPaya government is susceptible to such things, more and more often as the years go by, it would seem.

So take heart, Low Thia Kiang, tell us Singaporeans including the PAPigs that you are here to be counted and that you and your Workers' Party are in the fight to take over the government of Singapore and in the process you intend to kick the PAPigs asses right off the map of Singapore!!!

Anonymous said...

Sinkies are to be blamed for all the unhappiness.

It is only fair to say that the best outcome for any election is to have power share by different parties so that no party can have monopoly of power. There is also absolutely no rocking of the boat just because no party has got 2/3 majority.

What kind of problem or chaos coukd result from a multi-parties formed government? Sinkies are simply kiasu and kiasi, getting themselves into all kind of imagined problem and trouble.

If the people feel screwed by the leaders they have chosen, they deserve to be screwed, what else?

Anonymous said...

Whether oppositions ready or not, vote in as many of them as possible, even if they are cartoons. The aim is to have the papigs taken out of power. Once they are out, those voted in will have a new slate to start with and that is the desired outcome.

Anonymous said...

Welcome back Lucky....or should I say "Lucky you are back" cos I missed your writing. Once again a spot on piece.
The result for the malaysian polls will get interesting tonight. BN will go all out to win it...even if it means cheating.

Anonymous said...

Glad to see you are still writing. IMO you are the best blogger on Singapore's socio-political matters. Pls keep up the good work.

ST said...

Welcome back Lucky! Life is just not the same during when you haven't been writing. Missed your thought provoking articles.

Keep them coming!

Anonymous said...

Should we reduce the handout and give free education instead?

Anonymous said...

Which one create more value, giving handouts or free educations like the Nordic?

Anonymous said...

"Inequality in itself creates an unlevel playing field for Singaporeans and when a large segment find it so hard to overcome their disadvantages they will stop supporting the system...no matter how good your transport system is or what you try to do in public housing."

This is a winning statement. It describes precisely why I won't be voting PAP in the next election.

ITengineer Nano said...

Singapore Rental Properties
http://www.rentinsingapore.com/

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