Tuesday 20 March 2012

Strong support for inclusive Budget 2012 but concerns linger: REACH poll

93% polled welcome help for 3 vulnerable groups
By Janice Heng, The Straits Times, 19 Mar 2012

A GOVERNMENT poll has found strong support among Singaporeans for Budget 2012 and its twin aims of forging an inclusive society and restructuring the economy.

Government feedback unit REACH yesterday released the results of its telephone poll of 868 Singaporeans.

It said its poll found that an overwhelming 93 per cent welcomed this year's Budget measures to enhance support for three vulnerable groups: the lower income, the elderly and those with disabilities.

Some 84 per cent also agreed that boosting incomes through economic restructuring is the first task in building an inclusive society. In doing so, they signalled support for the way the Government has chosen to ensure economic growth continues to benefit all, in the face of a growing gap between the rich and the poor.



However, it is also clear from the poll results that new Budget measures to spur productivity improvements by capping foreign worker numbers have generated mixed feelings.

That is one finding of the poll, which was conducted between Feb 22 and March 2.

On Feb 17, Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam announced the Budget - which is the Government's financial policy for the year.

The poll found that only 68 per cent thought it was necessary to reduce the inflow of foreign workers, in order to spur productivity growth.

And just 69 per cent agreed with the Government's move to lower the foreign dependency ratio in the manufacturing and services sectors. That ratio is the maximum share of foreigners a firm can have in its workforce.

Members of Parliament yesterday said the lower levels of support signal Singaporeans' differing interests in this area.

MP for Bishan-Toa Payoh GRC Hri Kumar Nair said that while many Singaporeans may prefer having fewer foreign workers here, the owners of small and medium-sized enterprises (SMEs) feel squeezed by such measures.

REACH chairman Amy Khor agreed and said that it was not always possible for a policy to gain people's full support, even if it was explained well.

'Different segments will have different concerns,' she said.

Now that REACH has given the poll results to the ministries in charge of the various policies, Dr Khor said she is confident 'the ministries will look at how they can engage and educate SMEs about how they can overcome these challenges'.

By contrast, measures to strengthen the social safety net for vulnerable groups received far higher levels of support.

The biggest 'yes' from those polled went to new measures relating to preschool subsidies, support for children with disabilities and intermediate and long-term care for the elderly.

Some 92 per cent backed moves to allow more families to qualify for preschool subsidies and to provide more places for disabled children in need of extensive early intervention and development support.

Nine in 10 also supported higher subsidies for intermediate and long-term care for the elderly.

There were, however, two measures for the elderly that received less support - the Silver Housing Bonus and the Enhanced Lease Buyback Scheme.

Just 68 per cent thought these two housing schemes provided 'an attractive option for older Singaporeans to free up money for their retirement years'.

The Silver Housing Bonus, which gives elderly flat owners $20,000 to downgrade to a smaller flat, may be shunned by those who do not wish to uproot, said Nee Soon GRC MP Patrick Tay.

In the Enhanced Lease Buyback Scheme, a flat owner sells the tail end of his lease to the Housing Board in return for $15,000 upfront and monthly payments for life.

One drawback is that 'once you get into the scheme, you can't get out', said Mr Nair. It also prevents owners from passing their flats on to their children.

REACH also asked those polled for their views on the Government's decision to inject public funds to increase bus capacity. Mr Tharman had announced in his Budget statement that the Government would inject $1.1 billion to buy and run 550 buses over the next five years.

REACH said in a statement that the move has been 'relatively less well received' on its online platforms. Yet, in the telephone poll, 77 per cent agreed that the move would help reduce crowding and waiting times.

This shows that Singaporeans do believe that service levels will improve, but are 'less supportive of the Government co-funding private bus operators', REACH said.


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