Singapore is actually a socialist system in many ways in taking care of its people: K Shanmugam

singapore is actually a socialist system in many ways in taking care of its people k shanmugam

While the economy of Singapore is capitalist, Singapore is actually socialistic in its policies, Minister for Law and Minister for Home Affairs K Shanmugam said in an interview with the South China Morning Post

“Because from the time you’re born, you get money for being born, and long before you go to school. And then your school is heavily subsidised, and education quality is world class. Your healthcare is subsidised. Your housing, when you get married, is subsidised. Your jobmoney is topped up if you have low income. So which part of your life doesn’t the Government come in and help?”

“And so while the economy is capitalist, the State intervenes quite a lot, on the social side, to redistribute, with a philosophy of helping people.”


'you get money for being born'

A newborn Singaporean baby gets $4,000 in MediSave Grant which helps to pay for MediShield Life premium until the child is old enough to earn his/her own money.  

Baby Bonus Cash Gift is $11,000 or $13,000 for each baby.

'your school is heavily subsidised'

Primary school fee: $0

Secondary school fee: $5

Pre-University school fee: $6

In addition, every Singaporean child/student receives an annual contribution paid to the Edusave Account

Here’s how much each child will receive this year:

  • Primary school students: $230
  • Secondary school students: $290


Tuition fees in Institutes of Higher Learnings (IHLs) are subsidised up to 80% of fees depending on course of study.

'your healthcare is subsidised'

Up to 80 per cent in subsidies regardless of whether you are admitted to B2 or C class wards in public hospitals.

This means you could get up to $80,000 in government subsidies for a total bill of $100,000. 

'your housing is subsidised'

Up to $80,000 housing grant for first time homeowners of new BTOs.

$80,000 for eligible first-timer families for 2-room to 4-room resale flat and $40,000 to $50,000 for 5-room or larger resale flat.

'your money is topped up if you have low income'

If you’re at least 30 years old, and earn a gross monthly income of at least $500, but not more than $2,500, you will qualify for Workfare Income Supplement. You will receive from $2,100 a year to $4.200 a year

For details, check here.

No choice but to be competitive

Singapore is very small. It is a both a sovereign country and a city-state. Wealth creation in Singapore is based purely on being able to compete with the world. This is because Singapore doesn’t produce the resources that Malaysia, or any other country, produces. Therefore Singapore has to be competitive, Minister Shanmugam said. 

“So, in that sense, Singapore and Singaporeans don’t have much choice other than to compete with the world. And if we don’t compete, we are not competitive, then the quality and the standard of life in Singapore will be very different,” he said. 


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