Govt will strengthen safety nets without inflicting heavy tax burden & pursue growth: Lawrence Wong

He said: "Securing our economic competitiveness will become more, not less, important in the next phase of Singapore."

Fiona Tan | April 17, 2023, 05:21 PM

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Deputy Prime Minister and Minister for Finance Lawrence Wong said the Singapore government's approach "will, and must, always be pro-growth and pro-inclusivity".

In a wide-ranging speech on Apr. 17, Wong also emphasised that Singapore's social policies does not mean it will become a welfare state, and called on the political opposition to set out concrete alternatives.

Singapore's governing approach

Wong was speaking in Parliament, on the first day of the four-day debate on the Motion of Thanks to the President’s Address.

He touched on Singapore's governing approach, which he expanded on through three broad points, among other matters.

1. Always strived to appeal to broad base of Singaporeans

Wong responded to "some" who ask if the shifts to Singapore's social compact, through the Forward Singapore exercise, mean that the government has "shifted to the left."

He said: "It’s not so simple. Our governing approach is not so easy to characterise along the traditional political spectrum of left and right."

"After all, we have always strived to appeal to a broad base of Singaporeans and we have always taken care not to base our legitimacy on any narrow social group or class," Wong said.

No universal welfare, no heavy tax burden

Singapore also does not “blindly copy or replicate the models of other countries” nor does the government plan to adopt a “model of comprehensive universal welfare”.

Instead, it will stay true to its core values and chart its own way forward, while doing more to strengthen social safety nets in a prudent and disciplined manner, and not end up inflicting heavy tax burdens on everyone.

"Our overall tax burden for the middle-income group is now far lower than other advanced nations, and we will strive to keep it that way," Wong said.

He added, "More than that, we will ensure that our programmes achieve better outcomes for our people."

2. Economic growth "non-negotiable"

Wong said that the Singapore government will "continue to sustain real income growth for the middle", stressing that "economic growth is [a] non-negotiable".

"This government will, and must, always be pro-growth and pro-inclusivity," he added. "Securing our economic competitiveness will become more, not less, important in the next phase of Singapore."

"This is incumbent upon all of us, and upon my team: we will create good jobs and a good future for all Singaporeans."

The government’s efforts will complement and reinforce individual and collective responsibility.

Wong said, “We want government actions to catalyse more involvement by other members of society – employers, unions, community groups, and non-governmental organisations.”

3. Opposition should provide good and concrete alternatives

Next, Wong addressed the Leader of the Opposition Pritam Singh and the Worker’s Party (WP) about the Goods and Services Tax (GST).

While Wong acknowledged that WP "broadly agrees with and supports the [government's] policy directions", he said that their "sums do not add up".

"The opposition has offered some revenue alternatives, but their sums do not add up [...] But without the GST, which the Workers' Party still does not support, and I'm not even talking about the increase in GST, but the entire GST, which the Workers' Party still does not support, we will face a huge funding gap."

"None of the alternatives that WP has suggested will make up for the shortfall," Wong added.

He invited WP to provide concrete alternatives – "a serious alternative agenda for an alternative government" – that are "not just opportunistic or populist ideas to chip away, bit by bit, at trust in government".

That's how politics in a First World Parliament should work, Wong said.

He said that as Singapore develops into a mature democracy, it must have not just a "serious government", but also a "serious opposition" that thinks carefully about what they will do as the government.

"Where the opposition have good ideas, or where they can make a contribution to the ideas for improving our country, we welcome them."

"But we ask that you be upfront about the realities and trade-offs we face as a nation, and be honest about your plans, policies and intentions," he added.

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Top image from Lawrence Wong/Facebook