From vulnerable segments of the population to the middle class and women, different groups of Singaporeans have been affected in different ways by the pandemic, and the Government has taken a customised approach to help them, Deputy Prime Minister Heng Swee Keat said yesterday.

There are the broad-based, permanent schemes that provide a safety net for all Singaporeans.

On top of these are temporary assistance schemes - such as the Solidarity Payments, Temporary Relief Fund and Covid-19 Support Grant - to provide additional support, especially for vulnerable groups.

Addressing MPs' concerns about those hit hard by the pandemic-fuelled downturn, Mr Heng, who is also Finance Minister, said: "We cushioned the vulnerable against the worst of the crisis and mitigated social inequality."

He noted that the multiple layers of support helped bring down Singapore's Gini coefficient to a record low. The Gini coefficient - a measure of income inequality from 0 to 1, with 0 being most equal - went from 0.452 to 0.375 last year, after taxes and transfers.

During the debate on the Budget, MPs from both sides of the aisle acknowledged the efforts in this area, while suggesting ways for the Government to do even more.

Leader of the Opposition and Workers' Party (WP) chief Pritam Singh highlighted the plight of lower-income families, noting that there was a divergence between the data on inequality and their lived experiences.

In response, Mr Heng said the Government was fully aware that some families had been more badly hit. "This is exactly why we have tilted our support significantly towards the lower-income and vulnerable groups, and Government has partnered the community to reach out to those groups."

Mr Singh had noted that there was "not insignificant" support, Mr Heng said.

Mr Heng also stressed that conclusions about the support given should not be drawn based on one sample alone, but rather the totality of Singapore's policy measures.

A number of MPs, including Mr Gerald Giam (Aljunied GRC) from the WP and Ms Jessica Tan (East Coast GRC), had lamented that the middle-income group may have missed out on support measures.

Mr Heng said the bulk of every Budget goes towards uplifting all members of society, including the broad swathe of Singapore's middle class. He said $42 billion was set aside in this Budget for social spending and transfers, 35 per cent more than in the 2019 financial year.

Pointing to the different support schemes, he said there are some which target those with less means, and others, like the upcoming $100 Community Development Council vouchers, that will be given to all Singaporean households.

Mr Heng also urged people to look at each Budget in terms of whether the spending creates more opportunities for them and their children, and not just what handouts they will receive.

For instance, expenditure on security makes Singapore safe and allows property and asset prices to rise over time, in line with the country's economic fundamentals.

Investments in the economy also ensure that people have access to good jobs, he said. And through providing well-built affordable housing, as well as support for young families and seniors, people can achieve their aspirations for a better future.

Singapore has also been investing in good and affordable healthcare for its people, especially the elderly, said Mr Heng.

The overall system of taxes and transfers has also been gradually tilted in favour of lower-and middle-income groups over the past decade.

On average, lower-income Singaporean households can expect to receive benefits of $6,500 per person this year, after accounting for taxes. The figure is $3,500 for those from middle-income households.

Meanwhile, the highest-income households pay about $9,500 in taxes per person, after accounting for benefits, Mr Heng said.

UNEMPLOYMENT INSURANCE

Mr Patrick Tay (Pioneer), Nominated MP Hoon Hian Teck and the WP's Louis Chua (Sengkang GRC) had suggested that Singapore study the viability of unemployment insurance for workers.

Mr Heng said that while unemployment insurance appears attractive, it would not be sustainable without longer-term structures in place to help workers bounce back.

In countries like Germany, Sweden and South Korea, unemployment insurance schemes are linked to active labour market policy measures that aim to get an affected worker back into a job quickly and avoid skills atrophy, he said.

"It is more sustainable to ensure that workers maintain a source of income, and to upskill and re-skill our workers."

At the same time, the nature of jobs and skills will be changing faster as the global economy goes through an even faster pace of change, said Mr Heng.

"We will partner our business leaders, (the) labour movement and academics to study how to support employability and help those who falter, through measures that suit our context."