SINGAPORE – Ensuring that meritocracy works for all Singaporeans has been a key focus of the Government and its policies, but the tendency for society to stratify over time is why collective effort is needed to hold such forces at bay, said Deputy Prime Minister and Finance Minister Lawrence Wong.

While Singapore has done better than many advanced economies in keeping social mobility alive, Mr Wong said more needs to be done, and the Government is “actively working on all fronts” to encourage mobility. They include being open to all good ideas, he said in his Budget round-up speech on Friday.

Issues of social mobility and inequality were raised by several MPs such as Mr Leon Perera (Aljunied GRC) and Mr Desmond Choo (Tampines GRC) in their Budget debate speeches, with Mr Perera cautioning against an “unbridled and winner-takes-all meritocracy”.

Mr Wong said the Government has long recognised this problem and had set out to achieve a more open and inclusive meritocracy more than a decade ago, as seen in help for children from lower-income families and in the labour market through Workfare and the Progressive Wage Model.

Noting that support in the early years is critical, he said more will be done to narrow the pre-school enrolment gap between children from lower-income households and their peers.

“We are not done yet, and we are actively working on all fronts to minimise social barriers and encourage mobility – because this is what Singapore has always been about, and must continue to be,” he said.

The Government is also focused on new entrants to the workplace, particularly Institute of Technical Education (ITE) graduates, whom Mr Choo spoke about.

Mr Wong said programmes such as the work-study and technical diplomas have resulted in ITE graduates seeing better employment outcomes, with median starting salaries comparable with those with a polytechnic diploma.

But the Government cannot narrow wage gaps on its own, he said. For wages to go up sustainably, Singaporeans must be prepared to pay more for services, treat everyone with respect and value all kinds of work.

Employers, too, have a role to play. The move to raise the Central Provident Fund (CPF) monthly salary ceiling is to keep pace with the 80th percentile of monthly resident wages, which crossed $8,000 last year.

Mr Wong said he understood the concerns that this will raise business costs, but the move will benefit workers by enabling them to save more and strengthen their retirement security.

The Budget debate also saw several MPs raise issues concerning seniors, such as on employment, retirement security and long-term care arrangements.

In response, Mr Wong said the Government is reviewing the CPF system and retirement policies such as the Silver Support Scheme.

“Our aim is to assure all Singaporeans that as long as they work and contribute consistently to their CPF, they will be able to meet the basic retirement sum,” he said. Other ways will be found to help those who do not have the ability to work or the runway to work and save through CPF, he added.

Long-term care arrangements and their affordability are also being looked into, he said. But a broader review of Singapore’s aged care system is under way to enhance the care and living options for seniors in the community, said Mr Wong.

This includes looking into developing more senior living options in housing estates, how best to deploy and operate Active Ageing Centres and how to offer accessible and integrated services across neighbourhoods.

This is a challenge, given that the aged care sector is extremely complex and fragmented, and resources such as land and manpower are limited, he said.

On its part, the Government will continue to be pragmatic and open to all good ideas, regardless of where they come from, pledged Mr Wong.

“It is about what works, and what is effective in bringing us closer to our goals,” he said.