2014 BUDGET: RESPONSE BY THE NATIONAL SOLIDARITY PARTY (NSP) - TOWARDS A MORE GRACIOUS SOCIETY 1. 1.1. 1.2.

Why We Care for our Elderly Between 2001 and 2006, when NSP had a presence in the House, our member1 made repeated calls on the Government to do more for our elderly. NSP was among many concerned citizens who had - for years - constantly reminded our Government of its duty to do more for our elderly. The Government has finally heeded all the repeated calls by incepting the Pioneer Generation Package (PGP) in Budget 2014. In fact, the PGP is a long overdue gesture. The PGP is premised on rewarding a generation of people who had sacrificed much towards the economic success of Singapore. It is not centered on taking care of our senior citizens regardless of their contribution. A kind and gracious society takes care of its elderly because they are our elderly, regardless what they had given when they were younger. The Budget is a powerful tool the Government has at its disposal to shape desired outcomes and behaviours in society. Budget 2014 with all its bells and whistles about how it will repay the debt owed to a certain generation of Singaporeans for their contributions to the country in their heyday, only reinforces the transactional value in our society. We have missed the opportunity to lay the foundation for a more gracious one. The Government could have used Budget 2014 to shape a nation which is founded not only on economic success, but also on values. Our nation is almost 50 years old. We should aspire for higher ideals. Despite the missed opportunity to send a better signal, NSP welcomes Budget 2014's initiative to alleviate some of the concerns of our older citizens, especially their concerns of affordability of healthcare, through the PGP. By setting aside $8 billion for the PGP, the Government has budgeted for a fiscal deficit of $1.16 billion for the 2014 Budget. However, considering that if the economy does better than expected, there could be a surplus. And considering the fact that there is precedence that the Government's previous Budget estimates have seen significant upward revisions (Budget 2013 estimated surplus of $2.42 billion was revised upwards to $3.92 billion surplus, and Budget 2012 estimated surplus of $1.27 billion was revised upwards to $3.82 billion surplus), Budget 2014 could have considered other measures to ensure better peace of mind for our senior citizens.

1.3.

1.4.

1.5.

1.6.

1.7.

2.

Social Pension Programme

Steve Chia, who was a Non-constituency Member of Parliament from 2001 to 2006.

NSP: BUDGET 2014 RESPONSE - TOWARDS A MORE GRACIOUS SOCIETY

2.1. The older Singaporeans would have worked at a time when incomes were meagre, which means that they would not have much savings. Many would also not be currently earning an income. According to an international network of organisations dedicated to reducing old-age and inter-generational poverty2, 105 countries worldwide already offer social pension programmes which are non-contributory cash transfers to their elderly citizens. Such cash transfers to the elderly are widely acknowledged to be one of the most effective tools to reduce old age poverty and invest in human capital development. Elderly citizens of Brunei for example, get $250 from their Government in that country's social pension programme, and elderly Hong Kongers get $185 from theirs. NSP proposes that the Government considers an inflation-indexed social pension scheme for the benefit of our senior citizens.

2.2.

2.3.

3.

Waiver of FDW Levy

3.1. 3.2.

For elderly Singaporeans wishing to hire foreign domestic workers (FDW) to support them to age in place, NSP proposes that the FDW levy be waived for them. Budget 2014 seems to be overly focused on PGP to the extent that the needs and challenges of the future of all Singaporeans in areas like Healthcare, Education and Transport seem to be overlooked.

4.

Healthcare

4.1.

Bed per 1000 total population (a) (b) Our public hospitals here are facing a severe bed crunch. In 2012, there were a total of about 10,756 hospital beds in the 25 hospitals and specialty centres in Singapore, giving a ratio of 2.0 beds per 1,000 total population3. In comparison, for 2011, the Organisation for Economic Cooperation and Development (OECD) countries' average for hospital beds per 1000 total population was 4.8 and for curative (acute) care beds per 1000 total population it was 3.44. This means that Singapore has far fewer beds than many other developed countries. The Ministry of Health has assured that by the year 2020, it would have added 2,200 more beds for acute care5, but with our population projected to grow to 6 million by the year 2020 (according to the 2013 population White

(c)

(d)

2 3

http://www.pension-watch.net/about-social-pensions/

ttp://www.moh.gov.sg/content/moh_web/home/our_healthcare_system/Healthcare_Services/Hospitals.html 4 http://www.oecd.org/els/health-systems/oecdhealthdata2013-frequentlyrequesteddata.htm 5 http://www.mof.gov.sg/budget_2013/expenditure_overview/moh.html

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Paper), these additional beds would mean that the beds per 1000 total population would have increased to just 2.27 in the year 2020. While we need to leverage more on technology (e.g. to have day surgeries), there is an absolute need to increase bed capacity. (e) NSP proposes that Singapore's bed per 1000 total population be raised to at least 3.0 per 1000 total population.

4.2.

Better Primary Health Care (a) The Health Ministry had in 2012 itself acknowledged that Primary care is also an important sector that we need to develop to prepare for emerging needs.6 There is clearly a need to increase spending on primary healthcare. NSP proposes for more Government Polyclinics to be built and also that the operating hours of the Government Polyclinics be extended.

(b)

4.3.

Enhance Community Health Assist Scheme (CHAS) (a) (b) NSP also proposes that CHAS scheme be further enhanced. Currently, depending on household income and the number of chronic illnesses, CHAS beneficiaries can claim up to $480 per calendar year7. This level of subsidies may not be enough for people with multiple chronic diseases, or if they are disabled. Subsidy level for beneficiaries for three or more chronic diseases or persons with disabilities should be doubled.

(c)

4.4.

Number of doctors and nurses per 1000 total population (a) The increases in bed per 1000 total population and more Government Polyclinics with extended operating hours would mean that we will have to increase our headcount of doctors and nurses. For 2012, Singapore's doctor per 1000 population was 1.9 and for nurses it was 7.18. For 2011, OECD average for physicians per 1000 population was 3.2 and for nurses it was 8.79. NSP proposes an increase in the headcount of doctors and nurses to the levels of the high-income, first-world countries.

(c)

(d)

https://www.moh.gov.sg/content/moh_web/home/pressRoom/speeches_d/2012/moh_2012_committeeofsu pplyspeechhealthcare2020improvingaccessibi.html 7 How much subsidies will I receive? http://www.chas.sg/content.aspx?id=636

8

https://www.moh.gov.sg/content/moh_web/home/statistics/Health_Facts_Singapore/Health_Manpower.htm l 9 http://www.oecd.org/els/health-systems/oecdhealthdata2013-frequentlyrequesteddata.htm

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5. Education

5.1.

Nationalisation Pre-Primary Education (a) Budget 2014 will enhance pre-school education by providing more assistance through the Kindergarten Fee Assistance Scheme (KiFAS). In the recent years, the Ministry of Education has done relatively well in steering our educational system further away from a meritocracy based on type, to a meritocracy based on effort. Part of this effort saw the Ministry of Education setting up its own kindergartens to raise the overall quality of pre-school education in Singapore. NSP proposes that pre-primary education be nationalised and to make kindergarten education compulsory for all.

(b)

5.2.

Subsidising Local Tertiary Education (a) (b) NSP supports Budget 2014's announcement that it would enhance support in tertiary education for the middle-income group. Further to this enhanced support and with a view to improve our falling fertility rate, NSP proposes that the tuition fees of local tertiary education institutions be 50% subsidised for Singaporean second children and be fully subsidised for Singaporean third and subsequent children.

6.

Transport

6.1

Even with the Bus Service Enhancement Plan costing $1.1 billion and the Bus Service Reliability Framework, a $10 million experiment, the problem of overcrowded public buses still persists. Given that our two Public Transport Operators are stretched, NSP proposes that Government further enhance its initiative to tap on private bus operators. The Government should design a fair and robust licensing regime for such operators to ply the routes.

6.2

7.

Productivity

7.1

Budget 2014 is right to focus on reinforcing productivity drive. The Government has targeted to achieve 2% to 3% productivity growth per annum by the year 2020. With various schemes like Productivity & Innovation Credit (PIC) to help businesses to restructure, the Government has managed to arrest the negative growth of minus 2% from the year before. Nevertheless, the zero productivity growth for the year 2013 is disappointing.

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7.2 NSP proposes that the Government further simplify the criteria for such schemes and grants targeted to improve productivity, and remove any red tapes to allow for claims to be processed faster so that businesses will not have a strain on their cash flow.

8.

Transparency

8.1.

In the current climate, many businesses in Singapore are concerned about the rising business costs, especially rental costs. A publication by the Institute of Certified Public Accountants of Singapore10, citing a survey it conducted said: Many respondents indicated that the high rental costs affect their financial ability to invest in automation and staff training to enhance productivity". The Government with its related agencies being the biggest landlords in Singapore, can do more to ease the burden of escalating rental costs for businesses in Singapore. NSP supports efforts to study the feasibility of creating a national database tracking industrial and retail rents. Such an effort will not only enhance transparency, but may also have a moderating effect on the rising rental costs. Also, for the purposes of transparency, NSP proposes that capital receipts, which include revenue from sales of land and capital goods and other capital receipts, be included in the Budget as a revenue receipt.

8.2.

8.3.

8.4.

9.

NSP Proposals

9.1

There were other proposals NSP made in our response to Budget 201311 , including: (a) (b) (c) (d) a call to cut GST to 5.5%; a review of the Certificate Of Entitlement System; to raise top marginal personal income tax rate to 22% for those earning above $500,000; to re-instate Estate Duty at 5% for total assets (without differentiating between residential properties or other assets) between $10m to $15m, and 10% for amounts above that; and to raise the casino tax rates to 22.5% for non-premium players and 7.5% for premium players.

(e)

9.2

We urge the Government to consider our proposals which will benefit Singapore and Singaporeans if implemented.

10.

Conclusion

10 11

ICPAS Pre-Budget Roundtable 2013 at Page 10. http://www.scribd.com/doc/132365100/NSP-Budget-2013-Response

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10.1.

To create the kind of society which we and our future generations can be proud of, it is important that our citizens remain informed and active in the political discourse of our country. The five decades over which the PAP has held the reins of Government with super majorities, have been characterised by the PAP Governments persistence in having an uneasy if not testy - relationship with civil societies and its discomfort with active citizenry. NSP believes that an emotionally invested citizenry is the key to the making of a great nation, one which is robust yet supple and ready for the vagaries of future challenges. It is high time for the Government to embrace organised active citizenry. As our final proposal, we call on the Government to affirmatively promote and support the growth of Singaporean-run, Singaporean-registered non-government organisations and other cause-based associations by offering or enabling them the use of office space at designated locations at free or subsidised rents. This gesture will be a sign of the coming of age of our society, and one which NSP believes will auger well for the future of Singapore.

10.2.

10.3.

10.4. 10.5.

10.6.

Jeannette Chong-Aruldoss, Secretary-General On behalf of the 15th Central Executive Committee of the NATIONAL SOLIDARITY PARTY

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