Ensuring a moral and social economy in Singapore

This article discusses how Singapore does,which has gone beyond old age and certain traditional aspects, in terms of providing social security for its people. While there are no unemployment insurance benefits because of the economic philosophy of the paternalistic government which believes that maintaining a bouyant economy is the best “insurance”, there are many other unique schemes under the Central Provident Fund (CPF) which try to assure socio‐economic welfare. From housing, the CPF schemes have extended to medical, tertiary education and asset enhancement of CPF members. Inter‐generational provisions are also encouraged which strengthen the family as a very crucial social unit. The government hopes on one hand to give the people some self‐determination and self‐destiny of their choice in social security matters. On the other, it does have many means of ensuring that people make the “right” choices. With budget surpluses, the government has also been able to “top‐up” CPF members’ saving in a few ways. All in all, despite the economic inefficiency one may criticise of enforced saving, for the political economy in Singapore, the CPF mechanism appears to have served its purposes. However, some rethinking especially in terms of privatising more schemes may be wanted by the people in time.