Key priorities focus on enhancing social mobility and tackling inequality.
Deputy Prime Minister Lawrence Wong outlined several new initiatives to tackle inequality and enhance social mobility in Singapore. At the Economic Society of Singapore’s annual dinner on September 26, Wong shared a preview of recommendations in the upcoming Forward Singapore report, highlighting three key priorities: improving the lives of middle-income groups, supporting lower-income households, and promoting social mobility.
To support the middle class, Wong emphasized the importance of creating well-paying jobs and fostering real income growth through a strong and dynamic economy. This includes focusing on high-value and productive companies and ensuring that resources are allocated to more sustainable sectors. He also noted that many middle-income workers have experienced upward income mobility in recent years by moving to larger companies or multinational corporations, particularly in the last decade.
One significant initiative in the government’s plans is an increased investment in adult education and training to help older workers, particularly those in their 40s and 50s, who are vulnerable to technological disruption. The government intends to revamp the SkillsFuture program, offering top-ups for mid-career workers, training allowances for full-time workers, and support for those involuntarily unemployed. These measures are aimed at providing opportunities for reskilling and upskilling.
Wong also addressed income inequality, noting that while Singapore is doing relatively well compared to countries like the UK, there is still room to improve. He emphasized the government’s focus on addressing wealth inequality through various schemes, particularly for asset-rich but cash-poor seniors, and reiterated the importance of progressively taxing income.
Additionally, the government plans to reduce the wage gap between Institute of Technical Education (ITE) graduates and their peers from polytechnics and universities. This will include boosting the salaries of ITE graduates and recognizing the value of diverse career pathways, with an emphasis on instilling dignity and respect for all types of work.
Finally, Wong spoke about enhancing social mobility, particularly for children from disadvantaged backgrounds. He suggested that more intensive engagement and additional support would be necessary to help these families. Moreover, Wong called for greater philanthropy, encouraging those who have done well to contribute more to the wider Singaporean community.
These plans aim to ensure that all Singaporeans, regardless of their background, can thrive in an increasingly dynamic and competitive society.
