To The Moon

Singapore Deputy Prime Minister Lawrence Wong said the city-state needs to address income and wealth inequality amid mounting anxiety in society about being left behind.

In his most significant policy speech since being tapped as next-in-line to lead the nation, Wong on Tuesday, June 28, called for a more collective approach including “how much more the government should spend — and on what.” He also said Singapore needs to refresh its social compact -- what he described as a shared understanding of how everyone in society relates to one another -- and will strengthen its progressive system of taxes “so that everyone contributes something, but those with more contribute more.”

“I hope to see a society and system that benefits many, not a few; that rewards a wide variety of talents, not a conventional or narrow few,” he said. “That values and celebrates all individuals for who they are and what they can achieve; and provides all with opportunities to do better throughout their lives.”

Officials in the city-state have moved to stem anxiety over widening inequality, with Wong announcing plans in his first budget earlier this year to raise taxes on the wealthy, as well as on high-end property and cars. Still, Prime Minister Lee Hsien Loong has said that Singapore risks losing out to other hubs seeking to woo wealthy foreigners if they go too far in penalizing high-income earners.

The government will work to prevent income and wealth gaps from widening, Wong said on Tuesday, adding the island nation needs to “broaden its conception of merit beyond academic credentials.” That will entail working closely with employers to ensure they hire and promote staff “not just on the basis of credentials, but on skills and actual work performance.”

Inflation Fight

Singapore last week joined governments across the world in trying to protect those most vulnerable to surging costs of living, announcing a $1.5 billion package to help lower-income households. Core price growth picked up for a third month in May to its fastest pace in almost 14 years.

Frustration over inflation is growing in Singapore, with the majority of locals indicating in a May survey that the government was doing badly on handling price rises, according to pollster Blackbox Research Pte.

Wong, who is also Finance Minister, was chosen as the leader of the Singapore government’s so-called fourth generation, or 4G, team in mid-April, paving the way for him to become the country’s next prime minister.

Members of the 4G team will consult with the public and focus on six aspects including the economy, health and environment, according to a separate statement by the government on Tuesday. The exercise will last a year and end with a publication of a report with policy recommendations in the middle of next year, it said.

“It’s imperative to have such an exercise -- the need for a consensus on the social compact which must evolve with the changing environment and concerns,” said Eugene Tan, a political analyst and law professor at Singapore Management University. “It’s also about making the 4G team better known to Singaporeans and to deal with key issues so that their political sensitivity is reduced by the time the general election comes.”

Foreign Workers

Addressing the issue of foreign workers, which has been a hot-button election issue, Wong said Singaporeans would have to “accept some degree of competition” whether they are here or overseas, while reiterating plans to pass a new law to ensure that all employers uphold fair employment practices.

“At the same time, we will continue to update our policies to manage the inflow of work pass holders, ensure they come into sectors where we need them the most – and to complement, not displace, our local workforce,” he said.

Prime Minister Lee has said Singapore must prepare for more economic challenges as inflation will remain high and central banks are tightening policies, warning the world may face a recession within the next two years.

“We had expected a strong recovery from the Covid-19 pandemic, but have flown into strong headwinds,” Wong said. “We now find ourselves at a crossroads in our nation’s journey.”

watch out for $SINGAPORE EXCHANGE LIMITED(S68.SI)$for long term investment [Smile] 

@Daily_Discussion

@CaptainTiger

@TigerStars