SINGAPORE: Acting Culture, Community and Youth Minister Lawrence Wong has cautioned against getting Singapore into debt, even as the government ramps up social assistance.
He said state spending has to be kept sustainable to avoid passing the burden to future generations.
Mr Wong was addressing calls for more subsidies in various areas.
The calls were made by Joo Chiat residents at a community dialogue on Sunday.
Joo Chiat is a constituency where almost all residents live in private property. While they may be asset-rich, not all have steady income flows.
Residents took the opportunity to ask for more help when Mr Wong visited the ward.
Mr Wong, who is also a Monetary Authority of Singapore (MAS) Board member, explained the government’s approach in social assistance.
He said that while more should be spent to help the needy, the challenge is to maintain a progressive tax system and avoid getting into debt.
Mr Wong said the principle of the wealthier paying more taxes should stand to maintain fairness.
He said: “We are looking at how we can have a more progressive system in order to preserve and uphold this sense of a fair and just society.
“With globalisation, with technology advances, with the cost of living that people are concerned about, I think we do need to find ways in which we can continue to generate more resources in a sustainable fashion, in a fair and just way, that will allow us to redistribute these resources to those in need.”
Mr Wong said that while some Western economies are debt-saddled, Singapore is fortunate it can draw about two per cent of the country’s GDP from its reserves to finance expenditure.
In the 2012 financial year the amount was S$7.65 billion, drawn from the Net Investment Returns Contribution (NIRC).
The cost of healthcare in Singapore is an issue many Joo Chiat residents are concerned about. During the dialogue, several wanted the government to raise healthcare spending and provide more subsidies, especially for the elderly.
Mr Wong said: “We have already committed to increasing healthcare spending – doubling the expenditure over the coming few years. So that’s already in the direction that the government is moving towards.
“And we are also looking at revamping MediShield, which is a major reform that we are making, to make MediShield mandatory, to make sure that it provides better coverage and lifelong coverage for every Singaporean.”
Residents also raised the issue of housing affordability for younger Singaporeans who want to start families.
Mr Wong emphasised that the government has made it such that Build-To-Order (BTO) public housing is affordable, with subsidies for buying a new flat in a new area.
Mr Wong said that while the government will do its part to chip in on social assistance, Singaporeans also must play their role to care for each other in the community.
Singapore must be careful not to get into debt: Lawrence Wong
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