[quote]Originally posted by Qitai:
[b]Feb 4, 2005
Why S'poreans complain about the cost of living
By Ling Chien Yien
SEVERAL bread-and-butter issues were discussed at length in Parliament recently. The conclusion drawn was that since per capita income had grown faster than the cost of living from 1998 to 2003, it is not true that middle-income families are worse off than before. Rather it is Singaporeans' rising expectations, among other reasons, that have led them to complain.
The Government and its relevant agencies have ample resources to gather information and naturally are able to put forward arguments based on large amounts of statistical data. The public is unable to dispute the statistics. But statistics often give only a broad picture and may not reflect the real feelings of the people.
Singaporeans have for years heeded the call of the Government and worked hard to create economic wealth. It was the common hope of both the Government and the people to see their standard of living rise. Therefore, to hint now that Singaporeans' rising expectations are not absolutely necessary, and are even asking for trouble, would be an injustice to the middle- and lower-income groups.
In fact, we should ask whether, in the process of raising the standard of living, we realistically identified and addressed the high expectations of the people and the price to be paid to meet these expectations.
Given people's current income levels, did we consider whether they could afford these expectations?
Naturally, if we relentlessly seek maximum gratification, our income will never be able to match the price we need to pay for such needs, and we will be slaves to our unrealistic expectations.
In assessing policies on upgrading, we should avoid grandiose schemes so that the middle- and lower-income groups would not have to incur unnecessary expenses which lead to public grouses. Policymakers should study issues bearing in mind this point.
Let us look at living conditions from the point of view of an ordinary Singaporean.
Food prices
ACCORDING to official figures published in Zaobao, the food index rose only 2.6 per cent in the past five years. But it is difficult for an individual to grasp the true meaning of this figure. A bowl of noodles at hawker centres or food courts now costs up to $4, compared with $1.50 in the past. Is the high price due to people's excessive desire to have a good life or because they do not know how to be thrifty or cook at home?
The fact is, most working Singaporeans have no choice but to take their lunch at food courts or hawker centres. In many organisations, workers have to work late after office hours. They have no choice but to eat out or order take-aways. The 2.6 per cent increase therefore does not reflect fully the actual food expenditure of ordinary Singa- poreans.
Transport and communication
STATISTICS also show that transport and communication costs have fallen by 0.7 per cent in the last five years. Telecommunication costs have gone down as a result of fierce competition among the telcos, but benefits to the public lag behind those to companies and consortiums.
The situation would probably be less optimistic if transport and communication costs are computed separately. Public transport costs have definitely gone up significantly in recent years. Just ask anyone who takes public transport daily.
Health care
Health care costs rose 11.1 per cent in the last five years, much higher than the 2.5 per cent increase in the consumer price index (CPI).
Middle-income families are the hardest hit as they are the sandwich class and receive the least subsidies. With more government or government-aided hospitals being corporatised and privatised, outpatient and consultation fees at these hospitals have been rising.
In my own experience, consultation fees have risen from $20 many years back to the current $50, which does not include GST. It is a heavy burden to the middle-income group, especially retirees and those with chronic illnesses.
Indeed, it is difficult to retire with peace of mind in Singapore with such meagre personal and Medisave savings.
Recreation and travel
THE Government often argues that because Singaporeans holiday overseas frequently, their expectations of living standards have gone up. Hence, they really should not gripe.
I am of the view that it is a good thing that the people are able to enjoy the fruits of success, as otherwise people will lose the motivation to work hard. What is more, with life and work so pressurising here, there is little time for family life. So when families go on an occasional holiday, it is a good sign that people are unwinding. It also projects a picture of prosperity and happiness in the country.
There are reasons for Singaporeans choosing to go overseas on holiday. First, Singapore is a small country. It is natural for Singaporeans to look beyond Singapore in search of greater breathing space and freedom. Second, as opposed to frequent transport fare hikes at home, air fares have been sliding. Third, our recreational facilities are costly and limited. Hence, Singaporeans would rather drive their families to Malaysia for holidays than visit places like the Zoological Gardens, Jurong Bird Park, Sentosa or Singapore Science Centre.
The Government, while expressing its desire to promote arts and culture, is parsimonious in financing basic arts and cultural facilities. It is unwilling to look at the issue from the perspective of welfare. For instance, our museums have insisted on charging for admission, hence making these places out of reach for low-income Singaporeans. Middle-income people are willing to visit these places only once. As a result, we have splendid museums but they are shunned by Singaporeans. This is of no benefit to our cultural development.
A common justification for hikes in bus fares, MRT fares, university tuition fees and hospital charges is better service. Speaking from the heart, before the general public can even tell if there is really improvement in services, they have already felt the heavier burden of living costs.
Are we afflicted with a 'grandiose syndrome', that is, a compulsion to upgrade everything in a hurry? We have hotel-style hospitals,ostentatious university halls, opulent government buildings and buses equipped with mobile TV. These are additional burdens borne by the people who are not given a choice. Are these so-called 'high-quality' facades - which are not real needs - what Singaporeans want?
These are just a few of the many examples of the burdens felt by middle- and lower-income families. Statistics may show that growth in income is faster than increases in living costs. But in reality, the middle- and low-income families find it hard to share this optimism. Their complaints against the heavier burden of living costs and price hikes are not without reason.
-- The writer, a former Colombo Plan scholar, has worked in a public engineering department and in business organisations. This commentary first appeared in Lianhe Zaobao on Jan 28.
Simple Q & A : S'pore is too expensive, I feel like migrating with my whole family now to other country or remote island and live a simple and peaceful, stress free and noise pollution free life
