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Govt very concerned about social mobility: Chan Chun Sing

SINGAPORE — While the median gross monthly income from work — including employers’ contributions to the Central Provident Fund — for the bottom income group has gone up over the years, the rate of increase has slowed.

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SINGAPORE — While the median gross monthly income from work — including employers’ contributions to the Central Provident Fund — for the bottom income group has gone up over the years, the rate of increase has slowed.

From 1996 to 2002, it increased by 2.2 per cent per annum, after taking inflation into account. But between 2002 and last year, the increase was 0.1 per cent per annum. The slower income growth among those in the 20th percentile is in line with the experience of working residents in general.

Between 1996 and 2002, the median gross monthly income from work for full-time employed residents was 2.7 per cent per annum. The rate dropped to 1.3 per cent per annum between 2002 and 2012.

Disclosing these statistics yesterday — in response to Nominated Member of Parliament Tan Su Shan’s question on social mobility here, Acting Minister for Social and Family Development Chan Chun Sing noted that these figures do not take into account Government transfers such as the Workfare Income Supplement payouts.

Mr Chan said: “Social mobility can be interpreted in absolute or relative terms. In absolute terms, we seek to track improvements made by individuals over time. Typical indicators may include education attainment and income.”

In terms of education, currently, less than 1 per cent of Singaporeans did not complete secondary education — down from 4 per cent a decade ago.

During the same period, the proportion of those who completed tertiary education also increased from 84 per cent to 94 per cent.

Ms Tan noted that, compared to residents in places such as the Scandinavian countries and Hong Kong, those in Singapore were “less socially mobile” across generations. Was the Ministry of Social and Family Development taking any “proactive measures ... to try and stop this vicious poverty trap to lift the bottom 20 per cent of Singaporeans”, Ms Tan asked.

Mr Chan said the Government was “very concerned” about the issue. He noted that Singapore is “roughly in the same situation as the US and the UK”. Still, he pointed out that the data available were “from some years back”.

Going forward, the Government intends to consistently track cohorts of residents in longitudinal studies. To help low-income Singaporeans, the Government will focus on childcare and education “to make sure that even if they are not as well off in this generation, their children will be able to get out of the situation”, he said.

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