Your Excellency,
Mr Cao Duc Phat,
Minister for Agriculture and Rural Development of Socialist Republic of Vietnam,
Excellencies and Distinguished Delegates,
1. On behalf of the government of the Republic of Singapore, I would like to thank Vietnam, and particularly the Ministry of Agriculture and Rural Development, for hosting this meeting and for your warm hospitality.
2. I would also like to congratulate His Excellency Minister Cao Duc Phat, on your appointment as Chairman for the 6th Meeting of ASEAN Ministers on Rural Development and Poverty Eradication.
Regional Progress in Poverty Alleviation
3. ASEAN members have done well in addressing poverty. Economic growth in recent years has lifted millions out of poverty. The Asian Development Bank reports that 10% of people in South East Asia live on less than US$1 a day, representing a fall of more than 50% in the poverty headcount between 1990 and 2002. This is a great achievement. If we keep up this pace of progress, South East Asia has the chance to significantly reduce absolute poverty further by 2015.
4. Nonetheless, there remain significant challenges and there is still scope for more to be done. Even prior to the onset of the global economic recession, globalisation has caused incomes to stagnate at the lower end, while incomes continue to rise at the higher end. Economic restructuring has created difficulties for some workers, who do not have the skills to transit to new employment.
5. The current global economic recession poses real challenges to global efforts in reducing poverty. The World Bank estimates that globally, economies could contract by 1.7% this year. The East Asian and Pacific countries are likely to see a significant slowdown in their growth rates this year, with some ASEAN countries likely to go into recession. The Asian Development Bank estimates the financial crisis will add 60 million people this year in developing Asia to those already trapped in extreme poverty and another 100 million in 2010. In this climate marked with uncertainty and fear, this meeting is all the more important in re-affirming our commitment to encouraging sustainable rural development and the eradication of poverty.
Singapore’s Social Safety Net
Excellencies, Distinguished Delegates,
6. In Singapore, we believe that for our society to be resilient, individuals must seek to be self-reliant and the family should be their first line of support in times of need.
7. The Singapore government is committed to help every Singaporean share in the country’s progress. Our public housing programme has made us a home-owning society. Our education system gives every student, regardless of family background, the opportunity to do well and rise to the top. Our healthcare system delivers good, affordable medical care to all, rich or poor. In addition, our Central Provident Fund gives working Singaporeans a sense of security and confidence in their old age. We have also introduced the Workfare Income Supplement that supplements the wages of older low-wage workers, so as to encourage them to remain employed. These crucial policies and systems greatly mitigate the impact of globalisation on Singaporeans, even though they cannot nullify the powerful economic forces which hold down the wages of unskilled workers everywhere.
8. Under-girding the key pillars mentioned above is our Community Care Endowment Fund (or ComCare in short), which provides a final safety net for the financially needy. Under ComCare, we assist needy families find work and become self-reliant; we assist children from lower-income families prepare for their education; and we assist the destitute, the needy elderly and the disabled.
9. We do not believe in a permanent, unconditional, needs-based welfare system. Singaporeans should feel the need to strive and work hard for a better life. Hence, we are mindful that our measures must be calibrated so that we do not end up with excessive welfare for those with lower incomes. We also believe that these measures must be targeted so that help goes to those who need them most.
Tackling the Economic Recession
10. With its open economic structure, Singapore has not been spared from the effects of the global economic downturn. Singapore’s latest growth forecasts estimate that our economy is likely to contract between 6 to 9% in 2009. Reflecting the worsening economic conditions, the overall unemployment rate rose from 2.5% in December 2008 to 3.2% in March 2009.
11. The Singapore government has taken decisive action in response to this crisis. In our Budget this year, our Minister for Finance announced a Resilience Package totalling SGD$20.5 billion to help Singapore see through this period of exceptional difficulty. The Package aims to save jobs to the maximum extent possible, and to help viable companies stay afloat. It also enhances our capabilities for the long term.
12. Two key initiatives adopted under this Package are:
a. The Jobs Credit scheme, which provides a cash grant to employers for every Singaporean employed
b. The Skill Programme for Upgrading and Resilience (or SPUR for short) which provides heavy subsidies in a broad range of training programmes and training allowances to help workers to upgrade their skills
13. My Ministry has also made several enhancements to our social assistance schemes to cushion the impact of the downturn:
a. We have increased the cash allowance rates under our Public Assistance scheme, which is meant to help the destitute. We have also given an additional cash allowance to children from these families, to maximise the chances of them breaking out of the poverty cycle.
b. We have increased the flexibility of our Work Support scheme to help those who have been retrenched. A longer period of assistance will be rendered to those who have difficulties looking for a job in the negative economic climate.
c. We have also increased the subsides given to children from low-income families who are in kindergarten and child-care; and
d. We have increased the resources given to our grassroots organizations to help the needy residents within their midst.
14. The Singapore government remains committed to helping Singaporeans, particularly the low-income and the needy, ride out these tough times.
Conclusion
Excellencies, Distinguished Delegates,
15. As ASEAN members, we have a common resolve. We want to focus our regional co-operation efforts to improve the standard of living for our people, and we remain committed to achieving the target and objectives of the Millennium Development Goals.
16. The theme for this meeting – “A Unified ASEAN for anti-poverty in the context of economic crisis” aptly emphasizes the important role each of our governments has to play in ensuring that the livelihood of our citizens are not compromised despite the trying economic circumstances. It also reaffirms ASEAN’s common resolve to forge a social agenda that is focussed on poverty reduction.
17. In this uncertain economic climate, we must not lose sight of the need to learn from each other’s experiences, and ensure that our countries’ strategies for sustainable rural development and poverty eradication remain relevant. ASEAN meetings and workshops provide good learning and exchange opportunities for Member States. Singapore is privileged to be able to participate in such meetings and workshops and has benefited from such interactions.
Thank you.
