SINGAPORE - Do rising Singapore bankruptcies signal trouble ahead?

Leslie Shaffer | Writer for CNBC.com

Sunday, 16 Feb 2014 | 11:55 PM ET

CNBC.com

Roslan Rahman | AFP | Getty Images

Concerns over Singapore's rising household debt levels may increase after data showed bankruptcy orders have risen to the highest level since 2009, but it isn't clear whether it signals trouble ahead. 

Bankruptcy orders rose nearly 14 percent on year in 2013, and although the actual number was relatively low at 1,992, that is the highest number since 2009, the middle of the global financial crisis. 

"We're seeing perhaps rising costs coming from rentals and labor costs having some impact on some businesses in a very competitive landscape," said Song Seng Wun, an economist at CIMB. "It is inevitable that some businesses and individuals who may have overstretched themselves would struggle."

The wealthy Southeast Asian nation has seen soaring household debt levels in recent years as low interest rates have led to a borrowing spree, prompting the government to step in to curb demand amid concerns rates are heading higher. 

Singapore's household debt-to-income ratio has risen to 2.1 times in 2012 from a low of around 1.9 times in 2008 during the Lehman crisis, according to data in the annual financial stability review, released by the city-state's central bank, the Monetary Authority of Singapore, in December.

The MAS estimates about 5-10 percent of borrowers have a total debt-servicing burden of over 60 percent of their income, with that potentially rising to 10-15 percent of households if mortgage rates rise by 300bps.

Song noted that banks' charge-off rate for credit cards at the end of December was at 5 percent, up from 4.8 percent at the end of 2012 and 4.3 percent at the end of 2011. 

"It tells a story to a certain extent," he said. "The amount written off by banks is still modest, but nonetheless, the trend is there," Song noted. 

Others aren't terribly concerned by the rising number of bankruptcies.

"I do not think the number of bankruptcies poses a systemic risk to the economy," said Daniel Wilson, an economist at ANZ, via email.

But he added, "most households have borrowed more during this abnormal period of very low interest rates. This is one of the key reasons why we view rising interest rates as a risk for the medium term outlook in Singapore. Rising interest rates coupled with a softening property market is not the best combination."

Changing cultural values may also be driving some of the increase in bankruptcy orders. Traditionally for Asian families, declaring bankruptcy would be considered a "loss of face" and would be avoided.

"It's less taboo nowadays, certainly it's much more the case than say a decade ago," Song said. "With people encouraged to be entrepreneurs, there's less of a stigma to be declared bankrupt."

A stronger entrepreneurial spirit does appear to be driving some of the increase in bankruptcy orders.

While "traditional" problems – such as people living beyond their means and racking up debt on credit cards and auto loans – drive many bankruptcies, entrepreneurship gone wrong is spurring more filings, said R Nandakumar, an attorney who does insolvency work for both companies and individuals at RHTLaw Taylor Wessing LLP. .

"The bank will normally require personal guarantees from the director (of a company) for financing," Nandakumar said. "If the company fails, then the directors become liable."

While the percentage increase in the number of bankruptcy orders is shocking, one factor likely to help keep the absolute number low – and debtors negotiating directly with their creditors – is that filing for bankruptcy in Singapore is far from the relatively painless process in many Western countries.

"It's not an easy process. Going through the bankruptcy regime in Singapore is actually difficult," Nandakumar said.

Not only will bankrupts need to transfer assets to an official assignee and make payments for three to five years, but they could be disqualified from being officers at companies and will need to apply for permission for any trips outside the country, Nandakumar noted. 

Indeed, with those high hurdles that come with bankruptcy, Nandakumar believes the rise in bankruptcy orders may have less to do with economic travails and more related to the city-state's population increase – around 5.4 million people lived in the city-state at the end of 2013, up from 4.0 million in 2000.

Source: http://www.cnbc.com/id/101420808

SINGAPORE - Singapore now world’s most expensive city

Dhara Ranasinghe | @DharaCNBC

Tuesday, 4 Mar 2014 | 1:21 AM ET

CNBC.com

Singapore has topped Tokyo to become the world's most expensive city, according to a cost of living survey from the Economist Intelligence Unit (EIU).

In its 2014 Worldwide Cost of Living Survey, the EIU said the world's ten most expensive cities to live in are: Singapore, Paris, Oslo, Zurich, Sydney, Caracas, Geneva, Melbourne, Tokyo and Copenhagen, respectively.

Singapore, which was the world's 18^th most expensive city ten years ago, has steadily crept up the rankings on the back of a strong currency, the high cost of owning a car and soaring utility bills.

Justin Seah | Flickr | Getty Images

"Car costs have very high related certificate of entitlement fees attached to them, which makes Singapore significantly more expensive than any other location when it comes to running a car," the EIU said in its report.

"As a result, transport costs in Singapore are almost three times higher than in New York. In addition, as a city-state with very few natural resources to speak of, Singapore is reliant on other countries for energy and water supplies, making it the third most expensive destination for utility costs," it added.

And according to the EIU, Singapore is also the most expensive place in the world to buy clothes given an influx of luxury brands and expensive shopping malls and boutiques.

The EIU's cost of living survey is a relocation tool that uses New York, the world's 26^th most expensive city, as a base. The survey compares prices on a range of goods and services such as food, drink, clothing, rent and utility bills across 131 cities.

A high cost of living has become a contentious issue in Singapore, a wealthy Southeast Asian city, which has one of the biggest wealth gaps in the developed world in terms of its Gini coefficient.

Meanwhile, Japan's capital city Tokyo was pushed off the top of the cost of living ranking on the back of weakness in the yen, which fell just over 20 percent against the dollar last year.

And while one Asian city ranked as the most expensive in the world, another ranked as the world's cheapest.

Mumbai, India's financial center, followed by Karachi and New Delhi, were the top three least expensive cities in the world, the EIU said.

"Mumbai's title as the world's cheapest city and is a reflection of the structural factors that define price within the Indian subcontinent," it said in the report. "Although India has been tipped for future growth, much of this is driven by its large population and the untapped potential within the economy."

Source: http://www.cnbc.com/id/101462586

SINGAPORE - Do you give your 100% at work? Not if you live here

Dhara Ranasinghe | @DharaCNBC

Friday, 9 May 2014 | 1:22 AM ETCNBC.com

Nicky Loh | Bloomberg | Getty Images

It's one of Asia's wealthiest countries and has one the region's lowest unemployment rates. Yet a new survey shows that workers in Singapore feel less committed to their jobs than their Asian peers. 

Just 20 percent of employees in the Southeast Asian city-state are totally committed to their work compared with 41 percent in Indonesia, 28 percent in Malaysia and 27 percent in China, according to a global workforce survey by recruitment firm Kelly. 

That number for Singapore has declined steadily since 2010 when 38 percent of employees indicated a total commitment to their jobs, Kelly said in the report released late Thursday.

The findings could have implications for a country that is trying to raise its productivity levels to maintain economic growth against a backdrop of an aging population.

"Employee engagement indicates how interested and committed people are in their jobs. Our survey shows it is lower than ever in Singapore and this has upshots for workplace performance and productivity," said Mark Hall, vice president country general manager for Kelly Services Singapore.

"It is interesting to note that only just over a third of people said their job provides them with a sense of meaning, however when asked which would be the most likely factors for leaving their job very few (21 percent) said they would actually move to get more meaning from work," said Hall.

He added, "In fact, the most prevalent reason for changing job was salary and benefits (66 percent). This suggests that while money remains a major factor in attracting and retaining talent, it doesn't guarantee an engaged and productive workforce."

Singapore's unemployment rate inched up to 2.1 percent in the first quarter of the year from 1.8 percent in the final quarter of last year. Still, Singapore has one of the world's lowest unemployment rates, which compares with 3.6 percent in Japan, 6.3 percent in the U.S. and 6.9 percent in the U.K. 

The Kelly survey, which polled over 1,500 workers in Singapore, showed that workers were less likely to resign than their Asian peers despite feeling less valued.

When it comes to loyalty, half said they planned to look for a new job this year, the survey showed. That compared with an average in Asia of 64 percent.

Source: http://www.cnbc.com/id/101657579?__source=yahoo%7Cfinance%7Cinline%7Cstory%7Cstory&par=yahoo&doc=102088730

SINGAPORE - Singapore workers are an unhappy bunch

Ansuya Harjani | @Ansuya_H

Tuesday, 17 Jun 2014 | 2:03 AM ET

CNBC.com

Singapore is synonymous with a first-rate quality of life with its low crime rates, superior infrastructure and impeccable cleanliness – but employees in Southeast Asia's wealthy island nation are among the region's least satisfied.

Almost half of employees in Singapore do not think they have the perfect job, with three-quarters viewing their job only as a way to make a living and nothing more, according to a survey by global recruitment firm Randstad Workmonitor published on Tuesday.

Singapore ranks second in Asia Pacific, behind Japan, with the number of employees dissatisfied in their current jobs.

Given Singapore's rising cost of living it's not surprising that many of city-state's workforce view their jobs solely as a means to put food on the table, said Michael Smith, country director of Randstad Singapore.

Singapore is the world's most expensive city to live in, according to The Economist Intelligence Unit's (EIU) Worldwide Cost of Living survey released earlier this year.

Ximagination | iStock / 360 | Getty Images

Soaring transportation, housing and utilities costs have fueled a sharp rise in living costs over the past decade.

Transport costs in the city-state, for example, are almost three times higher than in New York. Owning a vehicle comes with very high certificate of entitlement (COE) fees, which makes it significantly more expensive to run a car in the city. COE is a license issued by the government to own a car.

The survey of almost 5,700 employees in Singapore also found that the majority of respondents would not hesitate to change jobs if they could make more money (80 percent), improve career opportunities (78 percent) or find a job that was a better match with their educational backgrounds (71 percent).

"Understanding what motivates employees in their job search and decision to remain in a role will not only allow employers to better engage with their staff, but also increase their employees' job satisfaction and as a result, the productivity of their workforce," Smith said.

"There are many ways employers can engage their staff and keep them motivated. For example, giving employees the opportunity to have more control over their career will allow them to set their own goals and feel a sense of achievement when these goals are met. Creating an atmosphere of growth by providing training and development opportunities can also help contribute to staff engagement and increase satisfaction at the workplace," he added.

Source: http://www.cnbc.com/id/101764440?__source=yahoo%7Cfinance%7Cinline%7Cstory%7Cstory&par=yahoo&doc=102088730

SINGAPORE - Singaporeans value new skills over pay rise: Survey

See Kit Tang | @SeeKit_T

Thursday, 4 Sep 2014 | 7:23 PM ET

CNBC.com

Bryan van der Beek | Bloomberg | Getty Images

Singaporeans show the most interest in upgrading their career skills in Asia, according to a global survey of 230,000 people by recruitment firm Kelly Services.

55 percent of Singaporeans surveyed said they would trade higher wages and career advancements for self-development opportunities, much higher than 43 percent in Malaysia, 42 percent in Hong Kong, 37 percent in Thailand and 30 percent in China.

"Climbing the corporate ladder is clearly important to people, but frequently not as important as developing the skills that will give them the capability and confidence to realize their long-term potential," wrote Mark Hall, Vice President and Country Manager at Kelly Services Singapore in a note.

The frequency of career development discussions with management factors into how willing employees are in broadening their skillset. 44 percent of workers in Singapore – mostly in marketing, engineering and IT – have career development discussions with their employers, putting the city-state 6 percentage points above the global average.

Does age matter?

Singapore's baby boomers – born between 1946 and 1964 – are the most motivated when it comes to acquiring new work-related skills, followed by Generation-Y and Generation X, the study showed. Gen-X are born between 1966 and 1976 while the Gen-Y are born between 1977 to 1994.

"Baby boomers have a more tangible appreciation of how skills [can help to] realize long-term career potential [but] Gen-Y may find that the skills they acquired during their higher education are still relevant," Kelly's Hall wrote in an email.

"I'm inclined towards acquiring new skills to raise my negotiating power for better pay in the future. With skills, money will come naturally," said 29-year-old Mr Kua, the key account manager at a cosmetics and beauty firm in Singapore.

For Singaporean Phua K.W., Gen-X employees face age disadvantages and family commitments that discourage them from broadening their skillsets.

"Who doesn't want to learn new things but if I give up this opportunity for a promotion, will I still get it next time? Age is against me," said the 44-year-old. "Also, when you're at the age when you need to bring home the bacon, upgrading skills takes the back seat."

Moving forward

This emphasis on skills will continue to rise as Millenials – the demographic cohort following Gen-Y – join the workforce.

"Younger workers enjoy teamwork and are constantly on the lookout for creative ways to solve problems. Hence, they look forward to opportunities to build new skills and stay ahead in a rapidly changing economy," wrote Stella Tang, Managing Director of Robert Half in Singapore.

Recent government efforts also play a significant role.

"The recommendations from the Aspire Committee are very encouraging, and will make it even easier for Singapore's employers to support the continuous development of their staff," Kelly's Hall said, referring to the Applied Study in Polytechnics and ITE Review (ASPIRE) Committee who made recommendations to improve the job prospects of non-university graduates last month. Prime Minister Lee Hsien Loong also mentioned last month the need for a "cultural shift" in employment practices and mindsets to focus on skills over qualifications.

"As competition for business and talent heats up in the region, the Singapore Government [is] helping Singaporeans acquire new skills and raise productivity in order to embark on new career paths and engage in higher value work to enable future growth," noted Tang.

Singapore has been trying to raise productivity levels in order to maintain economic growth amid an aging population. The Southeast Asian city-state has one of the world's lowest unemployment rates; unemployment stood at 2 percent in the April-June period compared with 3.6 percent in Japan, 6.3 percent in the U.S. and 6.9 percent in the U.K.

Source: http://www.cnbc.com/id/101970183?__source=yahoo%7Cfinance%7Cinline%7Cstory%7Cstory&par=yahoo&doc=102088730#.

SINGAPORE - Why Singapore graduates aren't getting the right jobs

By See Kit Tang | CNBC – 4 hours ago

A university degree may no longer be the golden ticket to an ideal job in Singapore amid a growing pool of degree holders and fast-changing economy.

Singapore's unemployment rate stood at 2 percent in the April-June period, well below the 6 percent global average for 2013 as calculated by the International Labor Organization, but recent statistics show rising underemployment in the Southeast Asian city-state.

In 2013, 2.3 percent of graduates were underemployed - highly skilled workers engaged in low-paying or low-skilled positions or that could only find part-time jobs - a tick higher from 2.2 percent in 2012, according to the Ministry of Manpower. The government analyzed five qualification levels; degree holders were the group in which underemployment increased.

Shifting dynamics

Retrenched middle-aged degree holders that face difficulty in re-employment are at the heart of underemployment, according to Hui Weng Tat, associate professor at the Lee Kuan Yew School of Policy, but underemployment among graduates is on the rise due to a culmination of factors.

Changes in Singapore's economy are spawning increasingly specialized roles that often require work experience or cross-cultural communication, business partnering, and problem solving skills that may not be taught in school, making it harder for entry-level graduates to find work.

"Wages in Singapore are high and companies often look to reduce cost by outsourcing low-added value roles. Unfortunately, this means that roles for graduates can be hard to come by as Singapore becomes more of an executive hub," Emmanuel White, regional director of Hudson Singapore, told CNBC via email.

Meanwhile, the growing number of degree holders in Singapore increases competition for jobs. Among Singaporean residents aged 25-34 years, 51.1 percent had a university education in 2013 compared with 26.1 percent in 2000, according to Singapore's department of statistics.

"As a result, some graduates take a longer time to find full-time employment and take part-time or temporary roles in the interim," a representative of recruitment firm Kelly Services told CNBC.

Greater emphasis on personal fulfillment among the younger generation is another factor.

"Many candidates, especially at the graduate level, are looking for more than just monetary benefits these days and this means they are more selective about the kind of company or even industry that they consider," the Kelly Services representative said. "Graduates [often] enjoy trying different roles and getting a variety of work experience before making a decision on their eventual career path."

Alan See, a 26-year-old with a bachelor's degree in English literature, is one example. He's currently interning at a local advertising firm and hopes the half-year stint results in a full-time job.

"The hours are long and I'm only paid $500 a month, but I'm having fun," he said. "I feel linguistically challenged every day and hope this can be my stepping stone into advertising,"

Cause for concern?

Shifting employment trends are a concern for the government. In March, Manpower Minister Tan Chuan-Jin cautioned that a graduate glut could result in "overeducated and underemployed" workers, as seen in South Korea and Taiwan.

In August, Prime Minister Lee Hsien Loong highlighted the need for a "cultural shift" in employment practices and mindsets to focus on industrial-related skills over qualifications.

However, recent underemployment data don't necessarily spell bad news for Singapore's drive to boost productivity: "The data just show a slight change," Professor Hui said. "I wouldn't be too concerned."

Source: https://my.news.yahoo.com

TRAGEDY - Singaporean tourist killed, 39 injured in bus accident, the third in 8 days – Bernama

The Malaysian Insider – 10 hours ago

A Singaporean tourist was killed while 39 others were injured, including two drivers, when the double-decker tour bus they were travelling in plunged into a ravine at KM70 of the Kuantan-Segamat highway near Pekan, Pahang, this afternoon. 

The bus, driven by a local driver, transporting 38 Singaporean tourists from Redang Island, Terengganu to Singapore went out of control and plunged into the 10-metre deep ravine at about 4.30pm.

Pekan police chief Supt Yahaya Othman said the victim who died was a male tourist in his 30s while all the injured passengers were sent to Pekan Hospital and Tengku Ampuan Afzan Hospital (HTAA) for treatment.

"Ten ambulances and firemen were rushed to the scene to help in the rescue effort. This is the third accident involving a bus in a week in Pahang," he said.

On Monday, three passengers, including an 11-month old baby were seriously injured when an express bus carrying 27 passengers was involved in an accident at KM116 of the East Coast Highway.

On April 13, a double-decker bus from Kuala Lumpur to Kota Baru, Kelantan crashed at KM11, Jalan Bentong Raub, killing three passengers and injuring 10 others.

At the hospital in Pekan, one of the passengers in today's bus accident recounted how he was forced to climb out of a broken glass window to save himself.

Recalling the chaotic moments, the man, only known as Karthiksan, 27, said the double-decker bus was going slowly and the condition of the road was good when the mishap took place.

"Suddenly, the bus went out of control and skidded before descending into a 10-metre deep ravine, causing the bus to roll over several times.

"At that time I realised the glasses of the windows on both sides broke and I thought I was going to die.

"We (passengers) immediately climbed out through the broken glass windows to save ourselves," said the Indian national who works at a computer software company in Singapore. – Bernama, April 20, 2014.

PEOPLE - Singapore teacher jailed for "love bites" on boy

AFP News – Wed, Feb 19, 2014

A Singapore court Wednesday jailed a 42-year-old female teacher for six months for committing indecent acts on a 13-year-old boy studying in the same school, including giving him "love bites".

The woman, a teacher for 11 years and a mother of four, had earlier pleaded guilty to two charges of sexual exploitation of a child or young person under Singapore's Children and Young Persons Act.

According to court documents, the woman, who cannot be named as it could lead to the identification of the victim, kissed the boy on his lips and given him love bites on his shoulder and neck on two separate occasions in 2012.

She became acquainted with the boy, a football team-mate of her son, and started to chat with him on Facebook, subsequently committing the incriminating acts when they went on outings to public parks.

The boy's mother filed a police report after discovering a love bite on his neck.

"This case involved the sexual grooming and exploitation of a young victim 13 years of age, by a school teacher," district judge Ng Peng Hong said in a written judgement.

"In my view, implanting of love bites and kissing with her tongue into the victim's mouth in a public park by the teacher were indecent, sexual and not appropriate," he said.

The judge said he was imposing a stiff sentence due to the "significant age gap" between the woman and the boy.

"The accused as a teacher and educator should not have defiled and corrupted the young victim," he said.

The judge said he did not place much weight on the defence argument that the woman was suffering from depression.

The woman could have been jailed for up to five years, fined Sg$10,000 ($7,932) or both, for each of the two charges she faced.

ASIA - Singapore, Dhaka are best and worst Asian cities

February 21, 2014

Japan took all the other spots in the Asian top five, with Tokyo in second place followed by Kobe, Yokohama and Osaka.

Singapore topped an international survey of the best cities in Asia for expatriates while the Bangladeshi capital Dhaka was named the worst.

Japan took all the other spots in the Asian top five, with Tokyo in second place followed by Kobe, Yokohama and Osaka, according to the annual ranking by the Mercer consulting group.

Worldwide, Vienna, Zurich and Auckland were named as the best places to live, followed by Munich and Vancouver. Paris was ranked 27th.

The city offering the worst quality of life was Baghdad followed by Bangui in the Central African Republic and the Haitian capital Port-au-Prince.

Singapore and Dhaka were ranked in 25th and 208th positions respectively with Baghdad in 223rd position.

Political instability, crime and pollution levels were among the factors taken into account by Mercer which carries out research into 460 cities worldwide for its Worldwide Quality of Living Survey. Many of the cities are ranked jointly.

“In an increasingly globalised economy, cities beyond the traditional business and financial centres are improving quality of life in order to attract foreign firms,” said Emmanuel Rivere of Mercer France.

- AFP Relaxnews

WORLD - Singapore Looks for Innovative, Affordable Transport Solutions

Singapore Looks for Innovative, Affordable Transport Solutions

Lompang, a new social app developed by Singaporeans, lets people share a scooter ride for $4.

By Maha Shah

December 25, 2013

In Singapore, it’s hard to find a taxi when you need it. Taxi fares are rising and waiting times are getting longer.

Residents have started looking for cheaper alternatives to get from one place to another. The newest one is Lompang – a social media app that connects passengers to riders. Each ride costs just five Singapore dollars ($4).

Three out of six taxis in Singapore are not available during peak hours, according to the Land Transport Authority. As if the long wait wasn’t enough, fares are also on the rise.

Last week, SMRT, a company that operates underground trains, buses and taxis in Singapore, raised fares for some taxis by 30 percent.

The basic fare for taxis starts from S$3 ($2.40), but surcharges are added. There are additional charges for peak hours, driving into the city and taking a ride after midnight.

Residents are becoming frustrated by the daily commute to and from work.

“The MRT is extremely crowded during office hours,” says Asim Saeed, who works for a foreign bank in Singapore. “Buses are too infrequent and booking a taxi always fails.”

As of this year, there are 27,516 taxis on the island state, catering to 5.4 million people. Other forms of transportation include underground trains and buses.

So why do taxis still fail to meet demand?

Statistics show that it’s not a numbers issue. The problem lies in managing taxis.
Taxis are doing fewer trips and changing shifts at the same time. Drivers are also choosy and refuse passengers going to certain locations.

Lompang, which became available on December 21st, helps people get to work on a scooter. People identify where they want to be picked up from and their destination using their handset’s Global Positioning System (GPS). Then they check for and choose riders they want to hitch a ride with. Passengers get to rate their riding experience at the end of the journey.

Initially the app will only work for commuters in the Central Business District of Singapore, which is the most crowded area during peak hours. This will encourage people working for banks and financial institutions to hitch a ride during rush hours.

All rides, regardless of distance or traffic, have a fixed S$5 ($4) cost. For every ride, the driver gets S$4 ($3.20) and the rest is deducted as a service fee. The transactions are cashless and work on a credit system.

Lompang – derived from the Malay word tumpang, which means to piggyback – is the brainchild of Erfi Azhar, a student at the National University of Singapore, and his friend Aaron Fu, who works for a foreign bank.

The two men, who are in their twenties, told the Straits Times that their app is not for commercial purposes. The charge is to cover insurance and petrol costs.

Although Lompang is the first of its kind in Singapore, ride sharing apps have been making waves in the U.S. for a while. What sets Lompang apart from its U.S. counterparts is that it uses scooter sharing rather than car-pooling.

A popular one called Uber that lets you car pool is putting taxis out of business. In Los Angeles, 200 taxi drivers protested against the apps in June this year, labeling them as illegal.

Founders of Lompang held networking events before the launch to introduce drivers to passengers. They have also used social media to market their app and spread awareness.

However, not everyone is excited about ride sharing. Some people are uncomfortable about sharing a ride with a stranger. Others think that scooter rides won’t work in a tropical country.

“I would prefer to car pool,” says Pia Anthony, who works as an Accounts Manager at Hewlett Packard in Singapore. “It’s either too hot or is raining, so a scooter ride doesn’t seem like a practical option.”

PEOPLE - As Singapore gets richer, more people left behind

As Singapore gets richer, more people left behind

December 23, 2013

SINGAPORE: Every day, through eyes clouded by glaucoma, Peter witnesses the spending power generated by Singapore’s economic success, knowing he can only afford to look.

The 54-year-old shopping mall security guard is part of Singapore’s hidden problem – a growing number of poor living on the margins in one of the world’s most expensive cities.

The party that has run the city state since independence in 1965 has always preached the virtues of self-reliance, but for some the cost of looking after themselves has moved beyond their means.

Peter fears that he can not afford to treat his glaucoma, a condition that could threaten his sight, despite being eligible for subsidised surgery and other state benefits.

He was told treatment would cost over S$4,000 (RM10,381), but the ailment only qualifies him to take up to S$1,700 from his state-administered healthcare savings.

Peter, who wanted his surname to be withheld as he did not have his employer’s permission to speak to media, earns around S$1,600 a month working in the glitzy Orchard Road area.

Half of his salary goes paying off S$20,000 of debts run up when his wife broke her ankle two years ago, and they are also still paying off their small flat in a public housing block.

“We have no savings,” he mumbled, recounting how he had borrowed from 18 moneylenders after his wife’s accident.

Singapore operates a system of compulsory savings, supplemented by employer contributions, for retirement and healthcare through its Central Provident Fund. Private insurance schemes are also available.

Yet, Mindshare, a global media and marketing services firm, found in a survey last year that 72% of Singaporeans felt they “cannot afford to get sick due to high medical costs”.

Data for 2002 to 2011 shows the government paid for less than one third of all healthcare costs, whereas the average for developed countries in the Organisation of Economic Cooperation and Development was between 60-70%.

Mounting unease over the number of voters who feel excluded from the comforts of living in Singapore has persuaded the People’s Action Party (PAP) to re-set its goals.

At a convention this month, the ruling party issued its first new resolution in 25 years, promising to improve living standards for all, create quality jobs, and provide affordable healthcare.

Minister for Social and Family Development Chan Chun Sing said the government is ready to help citizens struggling to meet medical costs, but some were unaware of the support available.

“Very often, the people who are most in need may not read the newspapers, access the Internet or even understand English,” he told parliament last month. “They need people who can talk to them in their language, people who will knock on their doors, check on them to see whether they are okay, and explain some of these assistance schemes to them.”

The city-state has seen a huge rise in wealth over the past decade as it positioned itself as a luxury low-tax base for ultra-wealthy people from across the world.

Per-capita GDP of S$65,048 exceeds that of The United States and Germany. And surveys highlight how Singapore, with a population of 5.4 million people, has more millionaires per capita than any other country. The Economist Intelligence Unit ranks it as the world’s sixth most expensive city.

But data published by the CPF shows the proportion of Singaporeans earning less than half the median income – an international yardstick for measuring the proportion of poor people – rose to 26% in 2011 from 16% in 2002.

“As one of the world’s richest nations, we can afford to do better,” Caritas Singapore, the Catholic Church’s social outreach arm, said at the launch of an advertising and social media campaign to highlight the plight of the poor.

About 12% of the 2 million Singaporeans at work earn less than S$1,000 a month. Whereas, Hui Weng Tat, an associate professor in economics at the Lee Kuan Yew School of Public Policy, reckons a typical worker needs a minimum S$1,400-S$1,500 a month to cope with living costs.

The city-state’s Gini co-efficient, a measure of income inequality, hit 0.478 in 2012, according to government figures, higher than every other advanced economy aside from Hong Kong.

Unlike Hong Kong, Singapore has not set an official poverty line, and the government has rejected calls to introduce a minimum wage.

What PAP has done is to make it harder for firms to recruit low-cost foreigners, tighten requirements to boost wages at the low-end, and amend labour laws to give more job security.

There are also plans to expand social protection and increase spending on healthcare. And while Singapore isn’t going to raise income tax anytime soon, it has raised taxes on bigger cars and luxury homes.

“There’s more to be done,” Finance Minister Tharman Shanmugaratnam said during a recent dialogue with diplomats and university students. “I’m not satisfied with the situation in the way it is.”

- Reuters,