Singapore's Fast Growth Creating Rich-Poor Divide?

[Kelpie]

From CNBC

Published: Wednesday, 4 May 2011 | 9:53 PM ET

By: Jenny Chan Vheng Yern

CNBC Asia Pacific

 

Liyana Dhamirah, 24, her husband Fazli bin Mohd Jailani, 31, and their three young children lived in a tent on the beach in Singapore for four months in 2009 when their Housing Development Board flat was repossessed as they were unable to service their mortgage loan.

 

Household incomes in Singapore have grown only 21% in the past decade, compared to real GDP growth of 72% in the same period.

 

The Singapore government provides subsidized housing via the Board to its citizens. Liyana and Fazli now share a rented flat with another family.

 

"It's unfair. I'm a Singaporean, yet I'm not benefiting at all from how rich Singapore has become."

 

Liyana and Fazli earn a combined S$800 ($652) a month but have been unable to make ends meet. "Sometimes I can't even afford a S$1 ($0.80) ice cream cone for my kids," says Fazli, a former mechanic apprentice, who is now unemployed and depends on the income from his wife's online handmade trinkets business.

 

Singapore, which goes to the polls on Saturday, reported sterling growth in the first quarter of this year. The economy expanded 23.5 percent quarter on quarter and 8.5 percent over the previous year. This was on the back of an unprecedented growth of almost 15 percent in 2010.

 

But not everyone in this island nation of 5 million people is celebrating. Irvin Seah, an economist at Singapore bank DBS says, "Plainly, not everyone has benefited equally from the economic growth that has occurred over the past decade."

 

Median household incomes have grown only 21 percent in the past decade, compared to real GDP growth of 72 percent in the same period, according to government statistics.

 

In 2010 when GDP expanded by 14.5 percent, household incomes rose on average just 0.3 percent after adjusting for inflation.

 

"In any capitalist society where profit maximization is key, this gap will widen unless we get heavy government intervention.

[Strudel-]

I think this was posted somewhere before (the link). Smart people would not even be bothered by this kinda news. One read and you'll find the 2 couples are plain stupid. Did anyone ask them to have 3 or 4 kids? You know your own financial situation and should plan with what you have. I'm sure they can cope fine with just 1 kid.

 

My family background isnt that good (mum and dad combine still less than 4 or 5k at the peak and now only 3k?) but we still manage. Its true that Singapore doesnt have much social welfare but the whole system is built assuming everyone is capable of supporting themselves no? This is what differentiate us from other countries.

Edited May 5, 2011 by Strudel-

[SimonTan]

Water from the tap is best!

Healthy and clean.

Why want to eat ice cream?

If got freezer at home, can make the coloured water seng-bao!

Add one seng-buay to make it taste better!!

 

 

"Sometimes I can't even afford a S$1 ($0.80) ice cream cone for my kids"

 

[Thaiyotakamli]

  On 5/5/2011 at 3:54 AM, SimonTan said:

Water from the tap is best!

Healthy and clean.

Why want to eat ice cream?

If got freezer at home, can make the coloured water seng-bao!

Add one seng-buay to make it taste better!!

 

 

"Sometimes I can't even afford a S$1 ($0.80) ice cream cone for my kids"

home also dont have how to make ice cream lol