S'pore's welfare

Bilveer Singh (The Jakarta Post, Dec. 6, 1994) cited no data to back his preposterous allegation that "Singapore is a society that is faced with growing impoverishment." Nor did he explain how it squared with his admission that Singapore's "achievements in public housing, full employment, medical care, public education, personal security...are very noteworthy."

After 25 years of full employment, no one sleeps on the streets or goes hungry. Incomes of lower and middle-income households have risen faster than higher income groups, narrowing the gap between rich and poor. The number of households who are destitute or unable to work, and need public assistance from the Government has fallen from 11,000 in 1970 to 2,200 last year.

Thirty-one percent of Singapore households own cars, more than Hong Kong. 87 percent of households own their homes, nearly all of whom live in HDB flats heavily subsidized by the Government. Every household has a television set. 95 percent own telephones, 81 percent own washing machines, and 75 percent own video cassette recorders.

Every year more Singaporeans are buying cars and houses, although it is not possible for the majority to own cars or landed property in land scarce Singapore. Despite increasing supply, cars and houses are expensive, because rising incomes have generated strong demand for them.

The three percent Goods and Services Tax (GST), introduced in April, was accompanied by a comprehensive package of tax cuts and rebates to cushion its impact. The offset package included three percent point reductions in corporate and top personal tax rates, additional subsidies on rentals and service and maintenance charges for HDB flats, and increased public assistance grants. The government guaranteed that no family would be worse off after the GST than before, and promised that the GST plus the tax cuts and rebates would be revenue negative in the short run, and revenue neutral in the long run. Is this Government "profiteering?"

Bilveer Singh maintained that "even basic necessities have increased greatly." In recent years, Singapore's inflation has been only two-three percent, one of the lowest rates in the world. Nominal wages have gone up by eight percent per year. As a result, real incomes have increased sharply across the board. The cost of living has increased less for poorer households than for higher income households. This year, despite the GST, inflation is only four percent, while nominal wages have increased by nine percent.

How do these statistics "hide through the law of average and generalization" the fact "that the majority of Singaporeans are basically living hand-to-mouth?"

Bilveer Singh teaches political science at the National University of Singapore. An academic who advances an outrageous thesis must produce strong supporting arguments, and establish convincingly that it is consistent with the facts. He cannot merely assert the conclusion to be proven and ignore facts to the contrary.

Bilveer Singh should either produce evidence to prove that "Singapore is a society that is faced with growing impoverishment," and that "a majority of Singaporeans are basically living hand-to-mouth," or else withdraw these allegations.

SIMON DE CRUZ

Charge D'Affaires A.I.

Singapore Embassy

Jakarta