‘decommodification’) is different. Ideal types of welfare regimes have been studied in the literature since the publication of Esping‐Andersen's book The Three Worlds of Welfare Capitalism in 1990. In other words, there is now a need for social welfare in the Singapore economy. Green Haven halfway house is a division of Singapore Buddhist Welfare Services. For example, class C patients whose monthly income is below S$3,200 will be subsidized by 80 per cent, and high‐income class C patients whose monthly income is above S$5,200 will be subsidized by 65 per cent. Currently, the corporate tax rate is 17 per cent and individual income tax varies from 2 per cent to 20 per cent (IRAS 2017). CPF) has been implemented to finance social expenditure. The mean years of schooling for non‐students aged 25 and over were 5.6 and 3.7 years for male and female, respectively. the corporate tax rate in Japan is about 30 per cent22 http://www.reuters.com/article/us‐japan‐economy‐tax‐idUSKBN0TV02D20151212 (accessed 18 May 2017).). The unemployment rate is still remarkably low (approximately 2 per cent in recent years); meanwhile, workers need to adapt to the changing economic structure, given that job opportunities in industries are decreasing significantly, and income in equality between skilled and unskilled labour is increasing. 2. In 2016, 40 per cent of WIS payments were in the form of cash, whereas 60 per cent were in the form of CPF contributions. The Singaporean welfare state was built at a time of a relatively young population and a strong manufacturing sector and, in particular, the rationale of individual responsibility by enabling people to work. To report suspected child abuse, please visit this page. History & Milestones; Statutory Boards & Councils. Governments may use a wide range of policy instruments or programmes to achieve their policy targets. When the PAP governed Singapore from 1959 onwards, the SIT was replaced in 1961 by a new statutory board – the Housing Development Board (HDB). The additional Retirement account is for people aged 55 and over; retirees can top up their account by cash or CPF savings (CPF Board 2016b). The Caregivers Training Grant (CTG) helps caregivers to enhance their capabilities in caring for the physical and socio-emotional needs of persons with disabilities or the elderly. With globalization, some manufacturing activities have been moved to other countries with low labour cost. As a result, the HDB was able to construct public housing over the entire island, which could house the majority of the population. The public housing policy is helpful in providing shelter for workers, thereby raising productivity. Although Singapore's overall government social expenditure is smaller compared to some other countries, the role of the state in the social policy areas, with regard to the political and economic contexts, is significant. In 2015, Singapore's gross domestic product (GDP) per capita amounted to approximately US$52,000 compared with US$32,400 in Japan and US$27,200 in Korea. However, the British government encountered financial difficulties and announced in 1967 the withdrawal of its large army, air force and naval forces in Singapore which at that time accounted for 10 per cent of the Singapore economy.11 See http://eresources.nlb.gov.sg/infopedia/articles/SIP_1001_2009‐02‐10.html (accessed 30 July 2016). The full text of this article hosted at iucr.org is unavailable due to technical difficulties. Include as much detail as possible. To study the changes and dominance, both ordinal and cardinal measures are used. Rather, individual responsibility for retirement, housing, education and healthcare is highlighted, and a compulsory saving scheme (i.e. The manner in which a welfare state can evolve is a critical issue discussed in the literature. If we rely too heavily on the individual, their efforts alone will not be enough, especially among the vulnerable like the low‐ income families, like the elderly … The community and the Government will have to do more to support individuals'.77 Prime Minister Lee Hsien Loong, ‘National Day Rally Speech’, 2013. However, the Singaporean welfare state is different from other cases in the East Asian welfare regime. Government also promotes the ‘many helping hands’ approach, highlighting the self‐help activities from various community organizations (Teo 2015). For example, the functional equivalences (e.g. The income Gini coefficient decreased to 0.463 in 2015 from 0.482 in 2007. work‐mediated welfare benefits) are suggested to be even more relevant than universal programmes in Japan (Estévez‐Abe 2008). Residents can use their savings in the CPF to buy public houses. Second, the HDB serves some social protection functions. However, the Singaporean welfare state achieves remarkable performances in education and health, with very different institutional arrangements and smaller government social expenditure, compared with other East Asian economies. Lower‐income enrollees receive subsidies of between 25–50 per cent of the premium. Singapore: Social Welfare Department. While the government gives little in direct monetary aid, it invests heavily in high quality public education, health care and housing. In addition, the monthly mortgage can also be paid from the CPF Ordinary account (CPF Board 2017). Such rhetoric has inadvertently ‘hidden’ a nuanced social welfare history of Singapore, one that has imperial and global origins but was also fundamentally shaped by local circumstances. 1999 ranks … The remarkable performances in income, education and health achieved by a small government size imply that the welfare regime in Singapore should be understood from a broad perspective beyond government social expenditure. SWD was meant to provide permanent assistance only for those with a permanent disability or because of old age. These ratios had been decreasing. Tax and other revenue had to pay for its expenditure which, by necessity, was pruned to the bare essentials such as defence and social services. According to the CPF Act, all CPF reserves are invested in government securities (Ramesh and Asher 2000: 57). This article discusses the major social policies in Singapore, which have been designed to accommodate the political rationale and economic growth strategies. Social policy in Singapore retains its fundamentally productivist philosophical orientation, but the recent deterioration in poverty, inequality and mobility trends is leading to adoption of more welfare-oriented and universalist policy solutions. Moreover, MediShield Life does not have an age limit, and is compulsory to all Singapore citizens and permanent residents. Currently, over 2 million Singaporeans have supplementary health insurance provided by the private sector, as shown in figure 4. Second, some training schemes have been provided to upgrade skills to improve employability. Learn about our remote access options, LKY School of Public Policy and Department of Economics, National University of Singapore, Singapore, East Asian Institute, National University of Singapore, Singapore. 1.1 per cent between 2003 and 2010; Yap and Gee 2015). In September 1946, the newly established Department of Social Welfare put up a proposal to the government to carry out a social survey of Singapore so that reliable data and information could be obtained to help formulate social. the sustainable development of the social welfare policies and services in the long term. (1947). These three programmes often draw fire from the three main contentions against the welfare state. MediShield, a voluntary health insurance plan, was initiated in 1990 and managed by the CPF board. Singapore was compelled to build itself militarily in defence, so that, within a decade, there was a Singapore army, air force and navy. Subsidies for class B2 and C beds account for 50–80 per cent (Ministry of Health 2012). In other words, the institutional arrangements for the social policies in Singapore may need to be understood in a broad context. The article suggests that Singapore provides a good example of a developmentalist approach to social welfare that successfully harmonises economic and social objectives. Consequently, expenditures on healthcare and pensions are expected to increase. First, ageing and a low fertility rate have become serious issues. Social Welfare in Singapore and Sweden: Differences in Organisational Systems of Health Care, Social Security and Rehabilitation - Volume 3 Issue 1 - Inger Olsson, Patrick Millet, Stig Vinberg, Göran Olsson, Alf Bergroth, Bodil J. Landstad 1st and 10th percentile) has increased from 15.96 in 1997 to 23.68 in 2015 (Department of Statistics, various years a). The Korean welfare state: A paradox of expansion in an era of globalisation and economic crisis, Governance and economic change in Singapore, The Monetary and Banking Development of Singapore and Malaysia, Social Policy in Post‐industrial Singapore, Social challenges in Singapore's healthcare system, Fifty years of development in the Singapore economy: An introductory review, Unequal Gains: American Growth and Inequality since 1700, How Singapore's central provident fund fares in social security and social policy, The Political Economy of a City‐state Revisited, Coping through reproducing state ideology: Working poor families in Singapore, Social Policy and Poverty in East Asia: The Role of Social Security, Ministerial Committee on Low Wage Workers, Ministry of Community Development Youth and Sports (MCYS), Being poor in a rich ‘nanny state’: Developments in Singapore social welfare, Organisation for Economic Co‐operation and Development (OECD), Labor, productivity and Singapore's development model, Manufacturing human resources: The role of the social investment state, Reagan, Thatcher and the Politics of Retrenchment, American exceptionalism and the welfare state: The revisionist literature, Welfare Capitalism in Southeast Asia: Social Security, Health, and Education Policies in Indonesia, Malaysia, The Philippines, Singapore, and Thailand, Convergence with a twist: East Asian welfare capitalism in comparative perspective, Buying Time: The Delayed Crisis of Democratic Capitalism, Interrogating the limits of welfare reforms in Singapore, Social policy issues in a post‐industrial society, East Asian Welfare State Regimes in Transition: From Confucianism to Globalization, Singapore's demographic transition, the labor force and government policies: The last fifty years. The COVID-19 Recovery Grant (CRG) provides temporary financial support to workers in lower- to middle-income households who experienced involuntary job loss, involuntary no-pay leave (NPL) or income loss due to the economic impact of COVID-19. The domestic market was small, and domestic industrial firms were not very competitive in international markets in the 1960s. In 2010, the ratios increased to 10.6 and 9.7 years, respectively (Yap and Gee 2015). Fast and free shipping free returns cash on delivery available on eligible purchase. As argued by Esping‐Andersen (1990), understanding the welfare states requires an examination beyond government social expenditure. The Singapore government has always been quite prudent and mindful of the potentially corrosive effects of welfare in designing it social policies. After considering government transfers, the Gini coefficient decreased to 0.41 in 2015 from 0.439 in 2007 (figure 7). Enter your email address below and we will send you your username, If the address matches an existing account you will receive an email with instructions to retrieve your username, I have read and accept the Wiley Online Library Terms and Conditions of Use, Singapore's policy responses to ageing, inequality, and poverty: An assessment, The Social Protection Index: Assessing the Results for Asia and the Pacific, Employment‐based social protection in Singapore: Issues and prospects, Adding a basic pillar to the Central Provident Fund system: An actuarial analysis, Globalization and regionalization: Singapore's trade and FDI, Welfare developmentalism in Singapore and Malaysia, Transforming the Developmental Welfare State in East Asia, Changing welfare regimes in East and Southeast Asia: Crisis, change and challenge, The China syndrome: Local market effects of import competition in the United States, Department of Statistics and Ministry of Trade & Industry, Transformation of the Welfare State: The Silent Surrender of Public Responsibility, Productivist welfare capitalism: Social policy in East Asia, The Economic Growth of Singapore: Trade and Development in the Twentieth Century, Inland Revenue Authority of Singapore (IRAS), Equality, employment, and budgetary restraint: The trilemma of the service economy, The Pacific challenge: Confucian welfare states, New Perspectives on the Welfare State in Europe, Developments in East Asian welfare studies. Further, as discussed in this article, the interconnections across different economic and social policies have been a significant part of the welfare policy design in Singapore. Moreover, the performance of Singaporean students ranked considerably high in abilities, including reading, mathematics and science, in the OECD's PISA test. For example, in the Lisbon strategy drafted by the EU, human capital, innovation and development have been highlighted as the focus of social and economic policies in Europe, which is different from the traditional focus on social protection (European Council 2000). The East Asian welfare regime, as an extension of the welfare regimes' typology defined in Esping‐Andersen (1990), has been discussed since the 1990s (Jones 1993; Holliday 2000; Kwon and Holliday 2007; Ku and Finer 2007). Three sets of major initiatives have been established recently. This paper examines the changes in social welfare in Singapore using Labour Force Survey data. Tertiary‐level education is now increasingly becoming important in the growth of the economy. It recognizes that we all have responsibilities to our families and to the community that sustains us' (MCYS 2010). Massive education was highlighted in training qualified workers during the success of the economy. At the same time, the physical labour input to the economy has been increased in recent years, supported by ‘an inflow of foreign workers' (cited by Pang and Lim 2015). Both the enrollment and expenditure of the Institute of Technical Education and Polytechnics have been increasing since 2000s (figure 1). This rate is considerably higher compared with other East Asian economies. In the literature, Singapore is considered as a ‘productivist’ welfare regime in East Asia (Holliday 2000), under which the social policies are ‘subordinated’ to economic policies. Overview of Social Welfare in Singapore There are a wide range of social policy schemes, under the purview of different ministries The rest of the article is arranged as follows. trade conditions, labour market structure) are used in order to understand the types of social insurance policy being implemented in developing countries (Mares and Carnes 2009). In 2014, Singapore ranked 11th globally and 1st in Asia. In general, welfare states face challenges, including high unemployment rates, de‐industrialization, increasing income inequality and fiscal sustainability of social programmes. [1] The government took up the recommendation and appointed a committee to work on the details of the survey that would dovetail with a population … The enrollment and expenditure of universities, the institute of technical education and polytechnics. The share of manufacturing sector in total employment has been decreasing from over 25 per cent in 2001 to about 16 per cent in 2015 (figure 5). Before the 1980s, government expenditure on education focused on massive primary education, in which basic skills in English, mathematics and science were highlighted (Pereira 2008). The tax rate has been set low to attract foreign investments, especially in the manufacturing sector (Huff 1994). The MediShield policy is for patients utilizing ward classes B2 and C. The number of enrollees for MediShield was over 3.5 million in 2014. You can contact us by phone: (01) 6734545. Moreover, the recent literature on the welfare state in the USA highlights the role of ‘tax expenditure’ (i.e. Source: Department of Statistics (various years b). SkillsFuture, initiated in 2015, is another scheme for all Singaporeans to upgrade their skills, whether or not they have a job. 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