Singapore seems to be finally embracing a social welfare system. "Workfare to be fixed part of social safety net," reports The Straits Times today. "Help scheme for low-income will be reviewed, adjusted but here to stay". The government does subsidise public housing, health care and education but has opposed the Western social welfare system so far. Now that is about to change.
The Workfare bonus for low-income workers will become a permanent feature of Singapore's social safety net, starting with a three-year run, reports The Straits Times.
"For every dollar you earn through your own efforts the government will give you something to match," said Prime Minister Lee Hsien Loong at a conference of the ruling People's Action Party yesterday.
The government assistance will be partly in cash, but most of it will go into people's provident funds, health care and "retirement", reported The Straits Times. Typically, the newspaper didn't spell out the difference between the provident fund and "retirement" -- the fund is meant to help retirees though it can be used for other purposes. But had it explained the difference, it wouldn't be The Straits Times.
Workfare is not a new concept. It's another form of welfare.
The Wikipedia says: "Workfare is an alternative model to conventional social welfare systems. Traditional welfare benefits are available with little required of the recipient, save their continued search for employment, if that. Under workfare, recipients have to meet certain participation requirements to continue to receive their welfare benefits. These requirements are often a combination of activities that are intended to improve the recipient's job prospects (such as training, rehabilitation and work experience) and those designated as contributing to society (such as unpaid or underpaid work). These programs, now common in the United States, Australia and Canada have generated considerable debate and controversy.
"The purported main goal of workfare is to generate a 'net contribution' to society from welfare recipients. Most commonly, this means getting unemployed people into paid work, reducing or eliminating welfare payments to them and creating an income that generates taxes. Furthermore, it is argued that once a person has recent employment experience, even at entry level, they are better able to obtain gainful, long term employment. Forcing people into employment or employment-like situations also aims to break the cycle of poverty where... welfare dependence -- it is claimed -- can become a way of life."
The Wikipedia adds: "Critics argue that there are many flaws and that many of the likely consequences outweigh the expected benefits.
"One main argument is that workfare tends to generate prospective employees who lack basic literacy or numeracy skills and are mostly unemployable outside the so-called McJob industries."
"The social consequences of the burdens of a workfare system are another focus of criticism. As discussed in the 2002 Michael Moore documentary film Bowling for Columbine, work requirements for welfare funds can put a strain on families with young children, especially when the families are headed by single mothers. It could also be argued that people with inherent disadvantages to finding employment (such as a disability, a speech impediment, or being of an ethnic minority) are unfairly punished for issues beyond their control."
In Singapore, however, where there are no unemployment benefits, people have to work anyway. So Workfare will be a bonus. However, one must work to get it.
The new system is being introduced when the Goods and Services Tax -- the sales tax -- is about to go up from 5 per cent to 7 per cent, which is likely to raise the cost of living.
