Consolidate welfare organisations for economies of scale

I was at the SGGives Fair at Our Tampines Hub recently and was heartened to see so many social service organisations.

Some were newly formed, while others have been around for many years.

But it made me wonder if there are too many of such organisations and whether there is a duplication of service.

Take, for example, care for the elderly and sick.

There are many such homes being set up.

Would it not be better to consolidate some of these organisations so that there are economies of scale in operations and resources?

Very often, such organisations find it difficult to recruit people because of limited budgets, as compared to the private sector.

If there is consolidation, the budget can be pooled and enlarged, and more attractive compensation packages can be offered to attract and retain talent.

In addition, volunteer resources can be pooled to serve more people.

The administration of grants by government agencies can be streamlined, as well as the oversight of such organisations.

And all the cost savings can be diverted to better serve the needy.

Tan Thiam Siew

A version of this article appeared in the print edition of The Straits Times on January 22, 2018, with the headline 'Consolidate welfare organisations for economies of scale'. Print Edition | Subscribe