Keeping the economic balance

A question posed at a recent forum, on whether the Government is drifting towards the left with the announcement of various support packages, evoked from Prime Minister Lee Hsien Loong the reply that, as the economy grows, Singapore needs to be rigorous in how it helps those who are not keeping up. The philosophy behind this policy position is not complicated. An earlier phase of economic growth raised all boats because the water level was almost uniformly low, and the Government could leave the economy to take care of social needs without resorting to welfare.

However, as the economy evolved not only in size but also in complexity, some Singaporeans did much better than others, who faced the danger of falling behind. This was not a simple issue of competitiveness but a structural one. Social stratification appeared as a threat to Singapore’s customary cohesion. Thus, it became imperative for the Government to intervene more decisively in the social process. Within the general ambit of retraining and reskilling Singaporeans, it was necessary to focus, in particular, on giving vulnerable groups a leg-up so that they would be equipped materially and positioned psychologically to participate in a growing economy, and not become its discontents. The idea was not so much to move to the left, but to revitalise the pragmatic centre of Singapore’s meritocratic policies. Certainly, people must be rewarded on the basis of merit, but merit itself should not be held hostage to inherited privileges that produce worthy economic achievements at one end of the social spectrum but result in stagnation at the other end.