SINGAPORE — Reiterating the dire consequences of widening inequality, Law and Home Affairs Minister K. Shanmugam said on Friday (April 20) that if left unchecked, Singapore runs the risk of having groups of elites creating a favourable environment for themselves at the expense of others — a warning first sounded by former Deputy Prime Minister Goh Keng Swee almost six decades ago.

While the Government has done “relatively well” — by not shying away from doing what is necessary to help the disadvantaged move up in society — Mr Shanmugam stressed that it needs to do more. To that end, the Government has announced moves to “go upstream in providing assistance”, such as doubling its annual spending on the preschool sector to S$1.7 billion in 2022.

While the principle of meritocracy remains relevant, “increasingly, the starting points are different for those born into families of different backgrounds”, he noted. “At the point of birth, there’s already a gap. That gap widens because of differences in families,” added Mr Shanmugam.

The Government recognises this disparity, which is why it is heavily investing in early childhood education, with the goal of promoting social mobility.

Speaking at the launch of a club set up by the Singapore Red Cross and preschool Kidz Meadow for children aged between five and six, Mr Shanmugam reiterated that the approach where progress “has to be based on ability and talent, rather than class privilege or wealth” has worked for Singapore.

Describing inequality as “one of the most serious issues” that Singapore faces today, Mr Shanmugam pointed out that the country has long been aware of its dangers as he harked back to Dr Goh’s remarks on the issue that were published in a Nanyang University journal in 1961.

Dr Goh had said that in advanced societies, “it is not so much open nepotism that is to be feared, but the insidious ‘old boy’ type whereby no illegalities are committed, but in which the pinnacles of power, influence and wealth are the reserve of those born into the right families”.

“The dominant majority is thus able to point out that those outside of the charmed circle just do not have the necessary qualifications to be admitted to the elite group,” he had added. “Thus many able and aspiring people are denied the opportunity for the full use of their abilities.”

Mr Shanmugam said he often reminds himself of Dr Goh’s “very important” words. Singapore’s society will “fracture” if such a scenario happens here, and “trust will be completely broken”, he warned.

He noted that the scenario is already taking place in some Western countries such as the United States. Once known as the focus of American industrial development, the US’ Rust Belt states, which include Michigan, have seen their economies declined.

As a result, factories, stores and schools have closed. Jobs have been lost and talent has migrated to other cities. Consequentially, there is a gulf between the Rust Belt and richer areas, creating “discontent, disaffection and disillusionment”, said Mr Shanmugam.

“There is a growing sense among the people in the Rust Belt that political elites were alienated from the Rust Belt,” he noted. “The people had been left behind, as the world moved on. So they’re angry. You preach about globalisation, they will say rude things to you.”

When that happens, trust is broken as the people who have lost their jobs “see the winners, the elite take most of the benefits, and (they) seem to be controlling the government”, said Mr Shanmugam.

Such a situation, however, is far from taking root here. Dismissing critics’ claims that Singaporeans have lost their trust in the Government, Mr Shanmugam pointed out that the level of trust in the country’s institutions such as the judiciary is high.

“Most of their suggestions are based on methods which have been tried in the West and have failed or are failing. They are too ideological to see that,” he said. “We have done well over 50 years by ignoring that sort of advice, and keeping focus on what really matters to people.”

Over the years, the Government has won Singaporeans’ trust by ensuring a corrupt-free Government, the availability of jobs, and by caring for the people. These allow Singaporeans to “fulfil their aspirations, maximise their potential, in a free, secure environment”, Mr Shanmugam stressed.

“That is why over 50 years, people have kept their trust. But it has to be continually earned,” he said.

Still, as the country matures, he acknowledged that addressing inequality is “increasingly challenging”. He noted that in Singapore, inequality “can be clearly seen by all” given the country’s tiny size — good-class bungalows are located not more than 15 minutes away from rental flats, for example. “So, inequality, if we allow it to grow will destroy our social cohesion in the long run,” he added.

Over the years, the Government has introduced a slew of initiatives such as the Workfare Income Supplement scheme to boost the wages of lower-income workers. These have helped to reduce the country’s Gini coefficient from 0.470 in 2006 to 0.458 in 2016. After accounting for Government taxes and transfers, the 2016 figure was 0.402.

While the Government gives a helping hand to those who need it, it is equally important to preserve the “ingredients of Singapore’s success, which is education, hard work, discipline and integrity”, Mr Shanmugam said. “We must never take away Singaporeans’ motivation to do better for themselves, to succeed. The focus should be on lifting up others, not penalising those who have done well,” he added.